U.K. Rate-Increase Bets Diminish
Economists and traders agree: Two Bank of England interest-rate increases this year is looking increasingly unlikely. A Bloomberg survey of economists earlier this week found that analysts expect only one move this year, while data showing U.K. inflation has slowed to the weakest level in a year saw traders pare bets on the pace tightening. While a hike in May is still expected, albeit with slightly reduced certainty, investors now see about a 40 percent chance of a follow-up in November, down from more than 50 percent last week.