Traders Bet on August Rate Cut as BOE Shows Willingness to Ease
- Money markets price over 50% chance of cut at the next meeting
- UK inflation at 2% target for first time in almost three years
The Bank of England in the City of London, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Traders are betting the Bank of England will cut interest rates in August after policymakers signaled they are willing to start easing monetary policy.
Money markets are pricing a more than 50% chance of a quarter-point reduction at the next central bank meeting, compared to 32% before Thursday’s decision. Traders also increased the amount of easing they for the year, almost pricing two full cuts.