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Traders Lift Bets on BOE Hiking Interest Rate to 6.5% by March
Traders are betting the Bank of England will raise interest rates to the highest level in a quarter century next year to battle inflation, a move that risks denting growth and dealing a blow to the nation’s housing market. Money markets are fully pricing a terminal rate of 6.5% by March, according to interest-rate swaps tied to policy-meeting dates. That would be the highest since 1998 and compares with wagers on a 5% peak just a couple of months ago. Policymakers have delivered 13 successive rate increases since late 2021, including an unexpected half-point hike last month. The tightening is now filtering through ... (full story)