1056 GMT - The Bank of England could indicate that it is approaching the terminal rate during Thursday's policy meeting, Tickmill Group's Patrick Munnelly says in a note. The terminal rate is the peak interest rate during a central bank's rate-rise cycle. The BOE is widely expected to increase interest rates by a quarter point to 4.0% this week. Nonetheless, the BOE could resist current market expectations of three more rate hikes by July 2027. U.K. jobs data shows signs of cooling, Munnelly says. Markets price in 105 basis points of BOE rate increases by the end of 2027, slightly lower than 119bps priced in last week, LSEG data show.
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