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ECB signals it is close to the end of their hiking cycle

• BoE slowdowns the pace of tightening by delivering 25bps hike.
• There was a strong majority in favour of a smaller 25bps hike implying higher hurdle for another larger 50bps hike.
• BoE leaves door open to further hikes if more evidence of persistent inflation risks. We expect one final hike in September.
• Smaller hike triggers GBP sell-off but relatively hawkish message and prior dovish repricing helps dampen move lower.