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BoE's first rate hike likely in Q2 17

The Bank of England will have its own Bonfire Night party on 5 November with the November interest rate decision, the Minutes of the meeting and the Inflation Report and press conference. 

However, judging from the evolution of market pricing of rate expectations since the August Inflation Report, little in the way of fireworks is expected from the MPC. 

The market has moved from pricing the first rate hike by May 2016 to Q2 17, pushing out timing expectations from about seven months at the August Inflation Report to about seventeen months now, notes Barclays. This is close to being as far out as the rate tightening has been priced this year, the peak being in Q1 15 when inflation first started falling sharply.

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