BOE rate cut bets pared back after the headlines today | Forexlive

And that is pared back from around the middle of next year before this. So, what changed? I detailed some thoughts earlier in my post about GBP/USD:

“For one, there are a couple of things to be mindful of with the UK headlines today. With regards to the PMI data, the economy looks to be in better shape than feared in Q4 and that will give the BOE more breathing room on rates. Besides that, the data also highlights more stubborn inflation pressures and that will see the central bank stick with a more hawkish rhetoric for as long as they can get away with it. And if the economy continues to hold up, who is to say that we might not see another rate hike? Other than that, we also had Ofgem announce a higher price cap on energy prices and that will feed into inflation pressures too in the bigger picture.”