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Analysts at Scotiabank noted that CPI was stronger than expected on both core and headline at 3.0% y/y and 2.7% y/y, respectively. 

Key Quotes:

“Comments from BoE MPC member McCafferty have offered additional support, compounding the constructive tone accompanying Monday’s speech from Vlieghe.”

“Both have flagged upside risk to the rate path outlined in last week’s Quarterly Inflation Report, suggesting three 25bpt hikes over the next three years.”