I posted earlier on the Bank of England Monetary Policy Committee decision coming up today, with JP Morgan saying a rate hike is a coin toss:
Bank of Montreal with a similar take:
- UK CPI caught our attention as it shored an unexpected deceleration in headline inflation to the lowest level in 18 months at 6.7% on a yearly basis.
- While this remains far above the pre-pandemic pace, the release was followed by a rethink of the odds the BoE hikes +25 bp.
- The probability of a move is now closer to 50% as investors consider the prudence of a pause.
BoE’s Bailey
Bank of England Governor Bailey