BOE Raises Benchmark Interest Rate to 1% in 6-3 Vote

The video discusses the recent interest rate hike to 1% by the City of London, highlighting the market's reaction and the unexpected MPC vote outcome. It explores the impact on sterling and UK two-year yields, and speculates on future rate hikes and quantitative tightening (QT) details. The market anticipates hikes at every rate-setting meeting until the year's end, with a terminal rate of 2.65% expected by mid-next year. The video also raises questions about the sequencing and pace of QT.

What does the term 'marginally hawkish hike' imply in the context of the interest rate decision?

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What was the expected outcome regarding the vote count for the interest rate hike?

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How did the market react to the interest rate hike mentioned in the text?

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What is the anticipated terminal rate for interest rates through next year?

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What questions remain regarding quantitative tightening (QT) as mentioned in the text?

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