Investors Could Price In BOE Rate Cuts If Middle East War Ends -- Market Talk

Dow Jones04-08

1502 GMT - Investors could start pricing in the possibility of the Bank of England cutting interest rates if the Middle East war is fully resolved, XTB research director Kathleen Brooks says in a note. The news of a two-week cease-fire agreement brought relief to global markets and eased concerns about energy prices pushing up inflation. "If this ceasefire leads to a lasting peace, then the inflationary impact could be lower," she says. Investors have cut back their expectations of the BOE raising interest rates, currently pricing in one BOE rate rise in 2026 from two BOE rate hikes priced in prior to the cease-fire announcement, LSEG data show. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

April 08, 2026 11:02 ET (15:02 GMT)

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