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CIBC: Less aggressive policy profile when rates hit 1%

BOE
  • “In view of the material adjustment to the near-term inflation profile, related to the determination of a number of members to be pre-emptive, underlines why we now look for hikes in both May and August, bringing the policy rate to 1.0%.”
  • “Over the longer run the combination of consumer headwinds, uncertainty as regards the impact of active QT, selling Gilts back into the market, allied to any reduction in energy price dynamics, points towards a less aggressive policy profile when the base rate hits 1.00%. Once we have reached such a level expect the bank to become increasingly mindful of the side-effects of managing down of its balance sheet.”

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