Our friends over at Newsquawk picked up a BMO note that argues that the Bank of England is more likely to hold rates unchanged in light of the UK budget and the reaction in bond markets.
“Considering the composition of the MPC, and the effect the budget measures will have on the BoE projections and on inflation persistence, we think at least 5 may well vote for an unchanged Bank Rate.”
That’s hardly a definitive call but market pricing for the Nov 7 meeting is just 21% for ‘no change’ compared to 79% for a cut.
The pound is having a rough one today gilt yields blow out.
GBP/USD daily