Here is a comparison of the before and after:
A 50 bps rate hike for tomorrow is now seen at roughly 55%, outpacing that of a 25 bps rate hike based on OIS pricing. There's nearly 75 bps worth of rate hikes priced by August and that says that we're now staring at the possibility that one of the meetings in either June or August itself will be a 50 bps move.
As you can see above, the curve has shifted significantly higher as well with traders growing increasingly convinced that the BOE has a long way to go in order to bring inflation back down.
The peak rate before today's data was around 5.83% in March next year but that has now risen to 6.01%. 🔥
