Today’s 25bps hike takes interest rates up to the pre-pandemic and post-Global Financial Crisis high of 0.75% and, although the Monetary Policy Committee (MPC) sounded a bit less hawkish than it did at its past meeting in February, it still signalled that rates may rise further in the coming months. We think rates will be increased to 1.00% in May and will reach 2.00% next year.
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