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UK Traders Are No Longer Fully Pricing Two Further BOE Rate Cuts - BLOOMBERG

FEBRUARY 19, 2025
  • Markets trimmed expectations for cuts to lowest since January
  • Move follows hotter-than-expected CPI report for last month

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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.

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