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ING: Expect 2, or at most 3, hikes in 2022

BOE
  • “Inflation has twice come in above expectations since the Bank’s November forecasts, and that’s what seems to have swung it for policymakers. There’s also been no discernible turbulence in the jobs market since the furlough scheme ended in September, which was a key test that policymakers had put forward last month. Policymakers are calculating that in a year-or-so time, when rate decisions today will realistically filter through to the economy, the outlook will be little changed by Omicron.”
  • “We expect two, or at most three, rate rises next year. However, we think policymakers will wait until after February's meeting before moving again when more data on Omicron's impact will have arrived”
  • “We’re penciling in May and November at this stage”

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