Traders Fully Price Two More BOE Rate Cuts This Year After CPI
- UK headline inflation rose less than expected in July
- Pound fell, paring gains that followed robust jobs data
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Traders added to bets on interest-rate cuts from the Bank of England this year, fully pricing two more quarter-point reductions, after data showed inflation accelerated less than forecast.
Money markets implied about 50 basis points of easing toward the end of the year, compared to 44 basis points on Tuesday. The chance of a cut in September rose to around 40% from 30% on Tuesday.