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VIEW: HSBC Still Lean Towards Hike Tomorrow, But Note Risks Of No Move Post-CPI

BOE

HSBC note that “the big downside surprise to core inflation throws the Bank of England a major curveball as it gears up to announce its policy decision tomorrow. Particularly in light of that continued strength in wage growth, our central case is for a (final) 25bp rate rise, bringing Bank Rate to 5.50% before the MPC takes a prolonged pause. But today's data raises a risk that the MPC will remain on hold, implying that policy rates are already at their peak.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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