Traders rebuff BOE rate cut expectations for November after UK CPI report

That is a step up from ~80% before the inflation data. Looking at the bigger picture, traders are now pricing in ~117 bps of rate cuts up until June 2025. And that is also a modest step up from ~105 bps before the numbers. As a reminder, there are six policy meetings to go between now and the middle of next year. So, essentially traders have moved from pricing in a little over four 25 bps rate cuts to now nearing five 25 bps rate cuts during that period, following the data earlier.

*The odds above are derived from the OIS market pricing from Reuters/Eikon

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