European equities stumbled after the U.S. Federal Reserve had signalled that it probably had at least one more hike in the tank after its historically rapid run-up in rates over the last 18 months.
Other analysts said they still thought a final BoE rate hike was the most likely outcome after a recent jump in global oil prices, but they stressed it could go either way. Though the move signals an expectation that it could finally move away from its easy money “yield curve control” policy it was also tracking U.S. 10-year Treasury yields which had risen to 4.43%, a 16-year peak, in the wake of the Fed.
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