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VIEW: J.P.Morgan: Further monetary policy tightening in the pipeline

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J.P.Morgan note that ”while global commodity prices have stabilized more recently, the bias for risk around inflation remains tilted to the upside (JPM FY22 CPI forecast: 5.1%). On the back of Thursday’s policy rate move, we continue to expect further monetary policy tightening to arrest rising inflationary pressures. We expect a further 50bp hike at the upcoming August meeting and a further 25bp in September, bringing the RRP rate to 4.0% this year. That said, we do not rule out the front-loading of monetary policy rate hikes and will revisit our policy rate call as the underlying data evolves.”

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

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