Sterling Markets Price In Excessive Hikes Amid Ongoing Oil Volatility

The sterling money market is pricing in more than four Bank of England hikes due to high oil prices, but some believe expectations have turned too hawkish.

Oil trades around $100 and has led markets to anticipate aggressive rate increases from the BOE. However, analysts think this may be overstating the situation.

Michiel Tukker, Senior UK & Eurozone Rates Strategist, thinks there's value in terming out further along the sterling money market curve due to the ample reserves in the system.