Post-Budget Bets Target £10 Million Payouts on Slower BOE Cuts

Trades made in the aftermath of the UK budget will score a tenfold return of £10 million ($13.2 million) if the Bank of England cuts rates only once between now and June.

The bets are on options tied to the Sterling Overnight Index Average rate, a proxy for policy rates. They will pay out as much as 10 times the initial outlay if the central bank’s key rate is at 3.75% by the end of June — higher than market expectations.