Investors trim BoE rate cut expectations after inflation rises

LONDON (Reuters) – Investors pared back expectations for Bank of England interest rate cuts over the coming year after data on Wednesday showed an unexpected rise in Britain’s rate of consumer price inflation.

Interest rate swaps showed 15 basis points of BoE rate cuts priced in by May in early trade on Wednesday, compared with 21 basis points on Tuesday.

For the end of 2024, 114 bps of BoE rate cuts are now priced in, compared with 122 bps on Tuesday.

(Reporting by Andy Bruce; editing by David Milliken)