In general, this had the look and feel of an interim meeting, another stepping stone to that elusive terminal rate. Indeed, Lagarde stated that “we will only know terminal when we get there”. That said, another hike in July is base case on the current information. Given that this is priced, this should not necessarily inspire another bout of market bearishness in our view. EGB spreads also remain resilient and the announcement of full QT from July has done little to change this."