Traders pare back slightly BoE easing bets despite the hot UK CPI report
Traders reduced slightly BoE easing bets despite the hot UK CPI report. The pricing fell from 53 bps of easing by year-end before the CPI release to 49 bps now. As mentioned here, traders reduced the probabilities for an August cut (which stands at 82% chance for a cut) but in the bigger picture, the base case was two rate cuts by year-end anyway, so even if they skip August, they will still have three meetings to cut.