{"id":116685,"title":"Traders are scaling back their expectations for a Bank of England interest rate cut.","publisher":"Share Talk","author":"sharetalk","published":"2024-09-18T06:56:59+00:00","modified":"2024-09-18T06:56:59+00:00","canonical_url":"https://www.share-talk.com/traders-are-scaling-back-their-expectations-for-a-bank-of-england-interest-rate-cut/","markdown_url":"https://www.share-talk.com/traders-are-scaling-back-their-expectations-for-a-bank-of-england-interest-rate-cut.md","json_url":"https://www.share-talk.com/traders-are-scaling-back-their-expectations-for-a-bank-of-england-interest-rate-cut.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["BANK","Bank of England","banking","BARC","Barclays","Benchmark","BoE","buyback","Chancellor","childcare","CME Group","consumers","Coverage","CS Venkatakrishnan","domestic","energy bill","England","FCA","Fed","Federal Deposit Insurance Corporation","Federal Reserve","FREE","FTSE 100","FTSE 250","FTSE100","futures","Goldman Sachs","household","HSBC","HSBC Holdings","Inflation","investors","Jeremy Hunt","Legal & General","lending","Lloyds Banking Group","London","midcap index","NatWest Group","Ofgem","pandemic","price cap","Prime Minister","program","Prudential","Qatar","Regulators","Rishi Sunak","SEC","Serious Fraud Office","share","Share Talk","ShareHolders","silicon valley","Silicon Valley Bank","SIVB","SVB","The Bank of England","Traders","Treasury","UK","Underground","USA","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/bank-of-england-nov-23.jpg?fit=1200%2C800&ssl=1","format":"news","language":"en-GB","content":"Traders are now betting that the likelihood of the Bank of England cutting interest rates tomorrow has diminished after services inflation rose from 5.2% to 5.6%.\n\nMoney markets suggest a 14% chance that the Monetary Policy Committee will lower borrowing costs, down from 25% before the inflation figures are released. However, traders still anticipate two additional rate cuts by the end of the year, albeit by a smaller margin.\n\nSuren Thiru, economics director at ICAEW, stated:\n\n“These figures indicate that inflation is in a challenging phase, as stronger price pressures in the services sector have kept the headline rate frustratingly above the Bank of England’s 2% target in August. The trajectory for UK inflation for the rest of the year appears largely set, with increased demand from a growing economy and rising energy bills in October likely pushing inflation modestly upward.\n\nWhile the rise in services inflation highlights a key obstacle to maintaining the headline rate consistently at or below target, the ongoing squeeze on wages should support a more definite downward trend.\n\nAn interest rate cut on Thursday now seems unlikely, as most members of the Monetary Policy Committee are likely to prefer evaluating the impact of next month’s budget before deciding when to ease policy again.”"}