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Recession Threat Has Markets Doubting BOE on Rates

  • Traders are betting on aggressive central bank tightening
  • The BOE’s ‘balancing act has become much more precarious’
Visitors at a shopping centre in Wakefield, UK.

Visitors at a shopping centre in Wakefield, UK.

Photographer: Joanne Coates/Bloomberg

A clash is brewing between markets and the Bank of England. 

As a recession looms over the economy, the central bank has signaled it’s wary of tipping the UK over the edge by moving too aggressively. But money market traders are holding tight to bets for a rapid tightening.