A Half-Point BOE Hike in March Now a Coin Toss for Markets
- Traders see 50% chance of a 50-basis-point rate increase
- Bets mount after BOE’s first back-to-back hikes in 17 years
Bank of England Governor Andrew Bailey says he favors moving interest rates gradually to get inflation under control.
Source: BloombergThis article is for subscribers only.
The Bank of England came within a whisker of hiking rates by half a percentage point this month, and traders are now seriously contemplating such a jump next time round.
Money markets have priced in an increase of 37.5 basis points to the bank’s rate in March, implying traders see a 50% chance of a half-a-percentage point hike. Four of the nine-member Monetary Policy Committee pushed for that in the February decision.