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BoE shifts forward policy guidance to table mountain approach

• BoE leaves policy rate on hold for 2nd consecutive meeting at 5.25%.
• Updated forward guidance places more emphasis on keeping tight policy in place for an extended period rather than need for further hikes.
• Weak growth outlook is not yet sufficient to encourage BoE to consider reversing rate hikes.
• We expect the pound to weaken further as UK rate market moves to price in more BoE rate cuts into next year despite pushback from BoE guidance.