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BofA Pulls Forward Rate Hike Call

BOE

BofA has pulled forward its BoE rate hike call following today's meeting: they now see 25bp increases in March and May, vs May and Aug previously. But they continue to see Bank Rate peaking at 1%.

  • BofA: "the BoE today suggested greater urgency in our view...Pay settlements seem to be the main factor behind that urgency, with the BoE's survey pointing to c. 5% wage growth in 2022. The BoE wants to squash those wage expectations, which implies faster hikes."

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