#EURGBP @ 0.86995 could move modestly lower – Danske Bank
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The Bank of England (BoE) hiked the Bank Rate by 50 bps to 3.50%. Economists at Danske Bank believe that the EUR/GBP pair is set to move marginally lower.
“In line with our expectation, the BoE today hiked policy rates by 50 bps, bringing the Bank Rate to 3.50%.”
“We expect the increasingly weak growth outlook to support a near-term ending to the hiking cycle.”
“We maintain our call for a 25 bps hike in February with risks to our call skewed towards additional hikes in 2023 if inflation pressures show increasing persistence.”
“We see a case for the EUR/GBP cross to move modestly lower as a global growth slowdown and the relative appeal of UK assets to investors are a positive for GBP relative to EUR.”
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