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Something for everyone in the statement

BOE
  • First glance the vote split is hawkish and the 2y inflation forecasts seems higher than expected (although there is a low 3y forecast here).
  • However, looking at the wording of this line it's more on the dovish side: "Most members of the Committee judge that some degree of further tightening in monetary policy may still be appropriate in the coming months."
  • The fact that has to be clarified as "most members" suggests that even though we saw no votes for unchanged rates today, we will likely get some in June. The question is how many...
  • Gilts and the SONIA strip originally moved lower, but are now reversing those moves and moving higher.
  • Jun-22 SONIA is 7 ticks higher than pre-decision, Dec-22 6.5 ticks higher and Dec-23 8.5 ticks higher.

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