Economics

Hot U.K. Inflation Spurs Biggest Bets on Rate Cuts in 15 Years

  • Traders see more than a quarter-point reduction in two years
  • Bets come after BOE warns of weaker growth as costs surge

Shoppers on Oxford Street in central London

Photographer: Hollie Adams/Bloomberg
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Faster inflation would normally fuel expectations for higher interest rates. In the U.K., where price gains are the quickest in three decades, traders are betting on rate cuts.