Markets are now fully pricing in 3 rates hikes by the BoE in 2026

The market's full pricing of three rate hikes by the BoE in 2026 suggests a significant shift in expectations around UK monetary policy. This indicates a growing confidence in the economic recovery and potential inflationary pressures; however, the timeline could still be subject to change based on upcoming data and geopolitical developments. Watch for implications on GBP strength and how this may influence investor sentiment across fixed income assets.