BOE Rate Cut Is Now Much Less Certain After Brexit Announcement
The Bank of England building in London, U.K. (Photographer: Simon Dawson/Bloomberg)

BOE Rate Cut Is Now Much Less Certain After Brexit Announcement

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(Bloomberg) -- Here’s one consequence of the Brexit deal the U.K. and European Union finally sealed on Thursday: money markets see a much lower chance that the Bank of England will cut interest rates next year.

BOE Rate Cut Is Now Much Less Certain After Brexit Announcement

Just two days ago, the market was pricing a full 25 basis-point decrease by November 2020 after policy maker Gertjan Vlieghe said continued Brexit uncertainty would probably require further monetary stimulus.

Now money markets see only a 60% chance that the central bank will lower its benchmark interest rate by 25 basis points by that time, according to MPC-dated Sonia swaps data from TP ICAP Plc.

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