Investors are no longer fully pricing a quarter-point interest ratehike by the Bank of England until February 2027, with bond yields extending their recent decline on Thursday, according to Reuters.
LSEG data showed markets pricing in 24.3 basis points of tightening by the Bank of England's December 17 policy decision, down from more than 25 basis points for most of August. Expectations increased to around 36 basis points of tightening by the February 4, 2027 meeting, Reuters said in the report.