Traders Pare Bets on BOE Cuts, Pound Climbs After UK Inflation
Traders pared bets on further interest-rate cuts from the Bank of England, sending the pound to a three-year high versus the dollar, after data showed UK inflation rose more than expected in April.
Money markets favor a terminal interest rate of 4% for the first time since early April, which means just one more quarter-point cut this year instead of two. Swaps also imply just a 40% chance of a reduction in August, from 60% before the data.
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