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Pill is implying he will vote for more hikes, but market is ahead of itself

BOE
  • Reading into points number 2 and 3, it seems one of the reasons he didn't vote for 50bp was so that markets didn't get ahead of themselves and become too aggressive pricing lots more hikes in... Which is precisely the market reaction we have seen to the four 50bp dissents.
  • This from Pill also seems to be trying to steer market pricing lower, but acknowledging further hikes this year: "Under our baseline paths for wages and energy prices, our published scenarios suggest that leaving Bank Rate unchanged at 0.5% indefinitely would – unsurprisingly – leave inflation above our 2% target at the policy-relevant horizon, whereas following the market-implied path to 1.2% by the end of this year would have left inflation somewhat below target. I leave it to you to draw any implications for where the MPC sees the path of Bank Rate headed. "

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