BoE Rate Hike Chances Slip to Just 15% as Market Prices Move Lower

Investors are not fully pricing in a rate hike by the Bank of England until February 2027, according to market prices.

The Bank of England's (BoE) next rate announcement is scheduled for September 17, but less than 4 basis points of tightening are priced in, implying only a 15% chance of a hike.

This is significantly lower than the 24.3 basis points of rate increases already priced in by the time of the BoE's December 17 rate announcement.

The British 10-year government bond yields have been moving lower, with a 2 basis point drop on Thursday to 5.01% at 0752 GMT.