A 'cocktail' of sticky inflation and a tight labor market boosts Bank of England rate hike bets
Publishing timestamp: 2023-02-16 01:33:41
Summary
The market probability of a 25 basis point increase at the next Monetary Policy Committee meeting increased to 73% on Wednesday, but dipped back to 66% by Thursday morning. U.K. inflation rate dipped for the third straight month to 10.1% in January, but wages are still rising rapidly. Bank of England Governor Andrew Bailey urged workers and employers to consider the expected downward inflation trajectory when negotiating pay settlements. The Bank of England is likely to deliver another rate hike next month, with some chance of further tightening at subsequent meetings. U.K. government bond yields fell sharply across the yield curve on Wednesday morning before recovering slightly.
Sentiment: NEUTRAL
Tickers: UK2Y-GB, .FTSE, UK10Y-GB, ABDN-GB,
Keywords: business news, abrdn plc, british 10 year gilt, ftse 100, central banking, british 2 year gilt, investment strategy, markets,