Traders Ramp Up Bets on Faster BOE Rate-Increases: Chart
(Bloomberg) -- Investors are betting that the Bank of England is on course for a faster path of rate increases after January saw better-than-forecast U.K. growth and jobs data as well as a global bond selloff. The overnight index swap curve, used by the BOE to condition its forecasts, shifted dramatically in the past month, and now shows expectations for three full 25-basis-point hikes over the next three years, up from two previously. Officials, who have previously commented on their own outlook for rates relative to the curve, will have a chance to endorse or dispute the market’s view when the central bank presents its Inflation Report on Feb. 8.
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