Gilt Market Cools Hike Bets Ahead of BoE Decision

The Gilt market has tempered its bets on a Bank of England interest rate hike ahead of the central bank's decision, which is set to be announced soon.

According to Global Capital, oil prices have eased inflation fears, leading to a reduction in expectations for a rate increase. This shift in sentiment comes just days before the Bank of England makes its decision on whether to raise interest rates.

The market had been pricing in a higher chance of an interest rate hike, but recent developments in the oil market have changed the dynamics. The Bank of England's decision is expected to set the tone for the Gilt market.