Investors' BOE Rate Hike Expectations Appear Excessive -- Market Talk

Dow Jones04-15

1115 GMT - Investors' pricing of expected Bank of England interest-rate rises looks too aggressive, Ebury's Matthew Ryan says in a note. Markets fully price in one quarter-point BOE rate rise by September and a 40% possibility of a second increase by year-end, LSEG data show. While investors worry about the potential for rising U.K. inflation given high energy prices, a weak labor market could limit rises in inflation, he says. "Given the slack clearly evident in the U.K.'s jobs market, we think that these second order impacts [of inflation] will be relatively contained," Ryan says. (miriam.mukuru@wsj.com)

 

(END) Dow Jones Newswires

April 15, 2026 07:15 ET (11:15 GMT)

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