Live Updates > Live Update Details
2026-11-05 21:34:30
[Traders Increase Bets on Consecutive Bank of England Rate Hikes, December Action Probability Rises to Around 50%] ⑴ After all members of the Bank of England's Monetary Policy Committee supported an initial rate hike, with one advocating for a larger increase, traders increased their bets on a second consecutive rate hike. ⑵ The interest rate swap market currently indicates a roughly 50% probability of the Bank of England raising rates by 25 basis points again in December, up from 30% before the decision was announced. The market also expects nearly three more rate hikes by 25 basis points each by the end of next year. ⑶ Market repricing pushed the yield on 2-year UK government bonds up by 5 basis points to 4.79%, while the pound stabilized around $1.3465. ⑷ Hank Calenti, international fixed income strategist at MUFG Bank, said he does not believe the Bank of England will wait until February to take action. ⑸ He added that unless there are clear signs that high interest rates are dragging down the economy, or a truly lasting peace is achieved in the Middle East, the Bank of England is likely to raise rates again in December.
