Traders move to pare back BOE rate cuts odds after UK CPI report

Going into the report earlier, traders were seeing June as a near 50-50 move (~48% priced in). Now, those odds have been slashed to just ~15% with an August move also considerably called into question. A rate cut in August was ~98% baked in before but is now just ~44% priced in.

As for the year itself, traders previously saw ~53 bps of rate cuts by the BOE. And that has been cut down to just ~37 bps at the moment.

This article was written by Justin Low at www.forexlive.com.