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UK investors cut rate hike bets after Trump pauses some tariffs

ReutersApr 10, 2025 6:44 AM

- Investors saw on Thursday slightly less chance of a Bank of England interest rate cut next month after U.S. President Donald Trump paused the implementation of many tariffs late on Wednesday, while pressing on with a higher rate for China.

Interest rate futures priced in a 19% chance that the BoE will keep rates on hold at 4.5% on May 8, having viewed a rate cut of at least a quarter-point as a near certainty on Wednesday.

Between now and the end of 2025, the market prices in 72 basis points of BoE rate cuts, down from about 83 basis points on Wednesday before Trump made his announcement.

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