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MARKET INSIGHT
  • Powell played down the possibility of 75bp hikes last night which has led to some repricing of the US curvey (with spillover effects to Euribor futures too). Overnight futures have moved off their highs, but still remain notably higher than prior to the announcement.
  • There is plenty to look out for today with policy decisions from the Norges Bank and Bank of England as well as a speech from ECB Chief Economist Lane.
  • Regarding the Norges Bank (9:00BST / 10:00CET announcement): At the last meeting June was suggested as the next most opportune time to tighten policy with three further hikes signalled for this year. Today's meeting is therefore expected to see an unchanged rate with the rate path either left at similar levels or possibly a little higher. For the full MNI Norges Bank Preview click here.

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