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VIEW CHANGE: Credit Suisse: Look for 50bp in August with 5.75% terminal

BOE
  • “We now expect one more 50bp hike in August and another 25bp hike in September to 5.75% (compared with one more 25bp hike in August before) owing to the BoE’s concerns about inflation persistence and its hawkish shift.”
  • “There are risks that the BoE hikes in November to 6.0% if core inflation fails to moderate meaningfully by Q4 (though we expect core inflation to fall to 5.5% by the end of the year).”

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