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BoE steps up pace of hikes in response to persistent inflation risks

• The BoE delivered a larger 50bps hike in response to recent significant upside surprises for inflation and wage growth. 
• The forward guidance was left unchanged. Future rate hikes will remain dependent on incoming data.
• The BoE did not signal that it was the first of a series of larger hikes, and on the other hand did not push back against market expectations for the policy rate to peak closer to 6.00%.
• The GBP has benefited from higher UK yields this year but will that will that begin to change as the policy rate moves further into restrictive territory?