Goldman Sachs on BoE rate outlook and GBP direction.

"The clear hawkish delivery at the November Bank of England meeting follows a similar refrain to other G10 central bank pivots throughout the energy shock. When the hurdle for a hike is deemed to have been met, the shift in stance and signalling is usually meaningful, with guidance towards further tightening ahead. The BoE largely followed this pattern this week, albeit with a range of views on the appropriate next steps from across the Committee," GS notes.

"Our economists see the Bank as being on track for a second hike in February, and we think that nearer-term path should do little to weigh on Sterling," GS adds.

Goldman targets GBP/USD at 1.37 by year-end.