Traders Bet BOE More Likely to Start Rate Cuts Than Fed or ECB
- Odds of quarter-point cut in May are double those of peers
- Citigroup favors betting on a rate cut at the next meeting
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Traders are betting the Bank of England could beat its European and US peers to interest-rate cuts, a turnaround from expectations it would be a laggard in 2024.
Money markets have raised wagers on easing at its next monetary-policy decision, putting the probability of a cut at 20%, compared to less than 10% for the Federal Reserve and European Central Bank. That follows remarks last week by Governor Andrew Bailey that rate cuts were in play at future meetings as inflationary risks have eased.