(Bloomberg) -- Investors are rewriting their outlook for the Bank of England after a week that saw Brexit talks hit another hurdle and turmoil in global markets.
Markets are no longer fully pricing in another rate increase in 2019, and bets on a May move -- previously seen as almost certain -- have been more than cut in half since early October. The move gathered pace on Friday as bonds rallied on speculation that the European Central Bank will also delay rate rises.
BOE policy makers, who have hiked rates twice in the past year, are due to announce their next decision and updated forecasts on Nov. 1.
The market-implied chance of a move in November 2019 has dropped to around 80 percent, while bets on a hike in May -- the first meeting after the U.K.’s Brexit deadline -- have slid to 42 percent from almost 90 percent earlier this month.
©2018 Bloomberg L.P.
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