The BoE decided to keep the policy rate unchanged at 5.25% with forward guidance remaining broadly unchanged. 

We think that this marks the peak in the Bank Rate of 5.25%, although wage growth and service inflation remain a joker.

We continue to see relative rates as a moderate positive for EUR/GBP, although GBP has largely decoupled from moves in relative rates the past month. 

We expect the relative performance of the Euro area and the UK economy to be a driver, targeting a moderate rise in EUR/GBP to 0.88 the next year.