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Bank of England hikes by 50bp but hints at tightening cycle nearing its end
Further increases in both wage growth and service sector inflation were enough to convince Bank of England (BoE) policymakers to hike interest rates by a further half a percent this month. But it’s abundantly clear from both the press release and the new forecasts that the Bank is laying the groundwork for the end of the current tightening cycle. For several months now, the Bank has been warning that it expects to continue hiking and that it could do so forcefully. The minutes of the last meeting confirmed that "forcefully" can be understood as meaning 50bp rate hike increments. So the fact that the Bank has ... (full story)