🏦🇬🇧BoE Tightening Pricing Looks Rich: Cable FX Macro

• BoE policy is in a data-dependent holding pattern at 3.75% (unchanged since the Dec 2025 cut). But the market has quietly repriced from “gradual easing” to a mild tightening bias.

• 50–62 bps of hikes priced by end-2026 (latest OIS reads show ~60 bps as of this week, down slightly from 70 bps post-April MPC but still a sharp reversal from cut-heavy pricing earlier in the year.

• Catalysts ahead include: June BoE rate decision, May CPI, labor market data, crude oil developments, and domestic politics.