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RBC: Hikes in Mar-22, Aug-22 and May-23

BOE
  • “Previously we only saw one further 25bps rate rise this year at the August meeting. We now see the MPC moving more aggressively, earlier. Clearly, those four votes to raise rates by 50bps at this meeting point to the March 17th meeting being very much ‘live’ and we now look for a 25bps rate hike at that meeting. We expect that to be followed up a further rate rise to 1% in the August meeting, and a 1.25% in May 2023.”
  • “We had looked at the possibility that the MPC may offer some insight on how they view the impact of Quantitative Tightening (QT). In the end, the issue was barely discussed with not one question in the press conference addressing the issue. Later in the day, the Governor spoke of ‘feeling our way’ on selling gilts when appearing on Bloomberg TV. In any case, no comprehensive assessment of how the BoE would view this policy tool was given.”

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