BOE Cut More Likely Than Hike in 2016, One Measure Shows: Chartby
What’s the probability of the Bank of England lowering interest rates this year? Higher than the odds of an increase, according to one measure. While traders see no chance of a hike, they’re pricing in a 40 percent probability of a cut by the end of 2016, according to Sonia swaps data compiled by Bloomberg. No move is expected on Thursday, leaving the focus on Governor Mark Carney’s press conference which will probably cover growth, inflation and Brexit.