Markets Could be Overpricing BOE Rate-Rise Prospects
Dow Jones
Jul 28
1454 GMT - Investors could be overpricing the possibility of interest-rate rises by the Bank of England in the coming months, Insight Investment's Jessica Shuman says in a note. Markets fully price in one quarter-point BOE rate increase in November, LSEG data show. At 3.75%, the BOE rate is already restrictive and U.K. growth is weak, lowering the prospects of interest-rate rises later this year, Shuman says. "We believe the Bank will prove more reluctant to tighten further than current market pricing implies."
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