Traders bet Bank of England will raise rates as so

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Traders bet Bank of England will raise rates as soon as next month - Today News Post Today News || UK News

Traders are betting the Bank of England will increase interest rates from record lows as soon as November after governor Andrew Bailey said at the weekend the central bank “will have to act” to keep a lid on inflationary pressures.

The latest signal from the BoE that tighter monetary policy is on the way sparked a sell-off on Monday in short-dated UK government debtexperts said, sending yields jumping higherThe 53 areas o. The two-year gilt yield climbed 0.15 percentage point to 0.72 per cent, the highest level in two-and-a-half years.

Investors have bet on increasingly aggressive rate rises since the BoE’s monetary policy committee said last month that lift-off from the current record low of 0.1 per cent was possible before its bond-buying programme expires at the end of the year:1640034537592,.

Bailey’s comments on Sunday, in which the central bank governor said he was worried about the rise in medium-term inflation expectations, sparked even more dramatic moves in markets linked to BoE interest rates.

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