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Inflation data likely to raise chance of hike next year, not tomorrow

UK DATA
  • Initial move in the pound largely unwound as this probably won't alter any votes tomorrow.
  • However we might see a slower burn move later this morning when the short sterling market opens as this seems to cement the case for a hike next year.
  • Note that the ONS notes that the increase in CPI was broad-based (biggest contributions from transport and clothing and footwear with partial offsets from restaurants and hotels).

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