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VIEW CHANGE: Deutsche Bank looks for 50bp August hike

BOE

"Evidence of still more persistent wage pressures will keep the MPC's foot on the accelerator. A second consecutive 50bps hike now looks more likely than not. Accordingly, we change our call for August, and now expect a 50bps hike at the next BoE meeting, taking Bank Rate to 5.5%. We keep our terminal rate projection fixed at 5.75%, however, and see the MPC delivering at least one further quarter point hike in September. Risks to our terminal rate projection are tilted firmly to the upside. We will reassess our view following the release of both the Financial Stability Report and the June CPI print."

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