YouGov is out with a UK inflation expectations poll:
- 1-year ahead inflation expectations 4.3% vs 5.0% in June
- 5-10 year ahead inflation expectations 3.2% vs 3.3% in June
These are moving in the right direction but a hike is still coming tomorrow with the market pricing in a 62% chance its 25 bps and a 38% chance it’s 50 bps. It will be an interesting one but the terminal top is now 5.76 in the rates market, well below the 6-6.5% that some were fearing last month.
Cable is down 71 pips to 1.2706 today.