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No pushback against higher gilt yields, but little prospect of rate hikes

The Monetary Policy Committee did not follow in the ECB’s footsteps by stepping up the pace of its QE purchases. Instead, it echoed the message of the Fed by emphasising that rate hikes are still a long way away. This suggests that rates won’t rise next year as the markets expect. In fact, we think that rates could stay at +0.10% until 2026!

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