LONDON (Reuters) – Investors reduced further their bets on how quickly the Bank of England will cut interest rates next year after the U.S. Federal Reserve signalled it would move slowly with reducing borrowing costs.
Interest rate futures on Thursday pointed to roughly 46 basis points of cuts to the BoE’s benchmark Bank Rate by December 2025, down from about 50 basis points of cuts which were priced into the market on Wednesday.
The BoE is expected to keep borrowing costs on hold at 1200 GMT on Thursday after its December monetary policy meeting. It has said it will move gradually to lower rates because of inflation pressures in the economy, despite signs of a slowdown.
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