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BofA now expects the BoE to hold rates in 2026, with one 25bps cut to 3.5% in November 2027 (revising its previous call of two 2026 hikes and three 2027 cuts); adds that a hike this year remains a close call on re-escalation risks

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BofA has cut its inflation forecast to 3.1% in 2026 and 2.3% in 2027, with growth revised up to 1.1% and 1.3% respectively

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