ING International: The market underestimated the possibility of a summer rate cut by the Bank of England.

Breakings ·  Jun 11 17:38
Economist James Smith of ING Bank in the Netherlands said in a report that the Bank of England is expected to cut interest rates in August. Earlier data showed that the UK job market had cooled significantly, with the unemployment rate rising from 3.8% at the end of last year to 4.4%. Smith said that the likelihood of a rate cut next week in the financial markets is only about 7%, while the probability of a rate cut at the August meeting is only 46%, which is even more surprising. He added: "We believe that the probability of a rate cut in the summer is much greater." However, after the recent decline in the response rate of data surveys, there are still doubts about the quality of employment data. Therefore, when it comes to the recent direction of interest rates, next week's inflation data will be more important.

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