The Monetary Policy Committee (MPC) struck a more dovish tone today while raising interest rates from 0.75% to a 13-year high of 1.00% and saying that it won’t make a decision until after August on whether to shrink its balance sheet quicker by selling gilts. But we think longer-lasting domestic price pressures will mean the MPC ends up raising rates to a peak of 3.00% next year, which compares to the peaks of 2.50% priced into the markets and 2.00% expected by other analysts. We’ll be talking about our forecasts in the light of the MPC decision in a 20-minute online briefing at 15.30 BST today. (Register here.)
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