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Interest rates to peak at 2.0%

We now think that Bank Rate will rise from 0.50% currently to 1.25% sooner than we previously thought. What’s more, we now expect three more 25 basis point rate rises in 2023, resulting in rates ending next year at 2.00%. That compares to the previous peak in our forecast of 1.25% and the peak of 1.75% priced into the financial markets.

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