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VIEW CHANGE: Danske: 2x25bp more hikes with risks skewed to the topside

BOE
  • “We think that the BoE will return to a smaller 25bp hike at the August meeting if data does not surprise significantly to the upside. However, we stress that risks are skewed to the topside”
  • “We do not believe that data will have weakened enough for the BoE to pause its hiking cycle at the September meeting. We thus revise our forecast to include a 25bp hike in September, marking a peak in the Bank Rate at 5.50%.”
  • “We still believe that the first rate cuts will not be delivered before Q2 2024.”

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