Markets Price 36 Basis Points of BOE Hikes in 2024 as Oil and Inflation Expectations Fall
Updated
Updated · Bloomberg · May 27
Markets Price 36 Basis Points of BOE Hikes in 2024 as Oil and Inflation Expectations Fall
4 articles · Updated · Bloomberg · May 27
36 basis points of Bank of England tightening are now priced by year-end, the lightest path in more than a month and consistent with just one quarter-point hike.
Swaps tied to BOE meeting dates imply that any second increase has less than a 50% chance, marking a clear pullback in expectations for further tightening.
Falling oil prices and softer inflation expectations drove the shift, easing pressure on the central bank to keep raising rates aggressively.
The repricing signals investors increasingly expect UK inflation risks to cool enough for the BOE to deliver a shallower 2024 hiking cycle.
As the US and EU cut interest rates, why is the Bank of England holding firm against energy-driven inflation?
With Middle East tensions threatening new price shocks, will UK mortgage rates rise again despite a weakening economy?