Bank of England likely to hike rates more aggressively

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British government bond yields continued to rise as investors expected the Bank of England to hike interest rates more aggressively than previously expected due to persistent inflationary pressures. Analysts at RBC Capital Markets said in a note that recent economic data has shown signs that inflationary pressures are becoming more entrenched. In our view, the Bank of England’s MPC will be forced to extend its rate hike cycle.