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###POV: RATE HIKE PRICED IN FOR MAY -......>

STERLING
STERLING: ###POV: RATE HIKE PRICED IN FOR MAY
- Upside for GBP could prove limited as rate hike expectations already priced in
for May BoE meeting.
Following the strong UK CPI data, MNI PINCH now prices a 77% chance of a BoE
rate hike in May.
-Hawkish commentary from BOE policy makers has continued - Broadbent and
Vlieghe.
-The BoE last week released its Quarterly Inflation Report, showing UK GDP is
expected to expand by 1.7% in 2018 - up from its previous projection of 1.5% in
November - and forecasting 2019 growth of 1.8%.
-LOOKING AHEAD: UK Retail Sales on Friday are expected to rebound sharply from
last months soft release. Headline m/m figures are seen at 0.6% from last months
-1.6%.
STERLING RISK: Boris Johnson kicks off the "Road to Brexit" speeches today, PM
May is scheduled to talk in Munich at the weekend. Downside data misses could
also add to near-term GBP volatility.

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