Traders Trim Odds of BOE Rate Cut in August to 50% After Pill
- Swaps had shown a 60% likelihood of easing at the next meeting
- Policymakers kept quiet during the UK’s election campaign
The Bank of England in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Conviction that the Bank of England will deliver an interest-rate cut at its upcoming decision waned after Chief Economist Huw Pill emphasized that inflation remains persistent in the UK.
Traders trimmed bets on a quarter-point rate cut at the central bank’s August decision, pricing in less than a 50% chance of such a move for the first time in around three weeks. Pill said that interest rate cuts are a matter of “when rather than if” but also signaled lingering concerns over stubborn price and wage pressures.