London — On Wednesday morning, there was reason for celebration in the United Kingdom as headline inflation finally reached the Bank of England’s 2% objective for the first time in almost three years.
However, the print did nothing but assist to reassure traders that a reduction in interest rates is not likely.
After registering higher chances of a move in that direction earlier in the week, money market pricing around 11 a.m. in London implied only a 5% probability of a Bank Rate cut during Thursday’s BOE meeting. The odds on an August cut were similarly reduced to about 30%.
Source (CNBC)
