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MNI BOE Review - Mar 22: Dovish hike; market pricing too much

  • Yesterday’s Bank of England meeting was undeniably dovish in line with our expectations.
  • With every rate rise, policy becomes less accommodative and moves closer to a neutral (rather than accommodative) interest rate. The further down this road we travel, the more emphasis MPC members will place on the growth outlook, in our view. We think that the tipping point for some members is likely closer than the market currently expects.
  • We discuss why there is such a different outlook for the BOE to the Fed, as well as the market reaction to the decision.
  • For the full BOE Review including summaries of 20 sell-side views, view the full report.
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MNI BoE Review - Mar22.pdf


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