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?

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

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

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

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