Central Banks
Traders Bet BOE’s Caution on Rates Will Give Way Soon
- Goldman sees faster pace of easing starting in November
- Big investors including Abrdn and Aviva are bullish on gilts
The Bank of England looks set to stick to its tentative interest-rate cutting when it meets this week, defying skepticism from a growing cohort of investors who see a need for more aggressive action.
While Governor Andrew Bailey and colleagues are widely predicted to hold off on another cut in borrowing costs on Thursday, money managers at Abrdn Investment Management Ltd., Aviva Investors and Allianz Global Investors are piling on bets that such caution can’t last long in the face of slower economic growth and a tax-raising budget.