ING Sees Market Overpricing BOE Rate Hikes; Expects 3.75% Unchanged Through 2026

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According to Francesco Pesole at ING, on July 17, the market may be pricing in overly aggressive rate hike expectations for the Bank of England. Markets currently have priced in 36 basis points of BOE rate increases for 2026, but ING expects the central bank will maintain rates at 3.75% unchanged throughout the year. Pesole noted that near-term sterling rates face significant downside risks.
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