UK Traders Are No Longer Fully Pricing Two Further BOE Rate Cuts
- Markets trimmed expectations for cuts to lowest since January
- Move follows hotter-than-expected CPI report for last month
Andrew Bailey
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Traders trimmed bets on further UK interest-rate cuts from the Bank of England this year in the wake of a surprise jump in UK inflation, and now see fewer than two more reductions through December.
Money markets are pricing just 49 basis points of easing by year-end, the least since Jan. 31, after the central bank cut rates earlier this month. Data on Wednesday showed that consumer prices rose to a 10-month high in January, complicating the BOE’s rate outlook as policymakers look to support growth without reigniting inflation.