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STIR: Just Over 55bp Of BoE Cuts Priced For '25

STIR

Little net movement in BoE-dated OIS today, leaving just over 55bp of cuts priced through ’25.

  • The next 25bp cut is not fully discounted until the end of the May meeting.
  • Our macro team still looks for cuts in February in May, meaning that the market-implied rate cutting cycle continues to look quite flat, in our view.
  • SONIA futures -1.5 to +0.5, the recovery from worst levels in bonds has pulled contracts off session lows.

BoE Meeting

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Little net movement in BoE-dated OIS today, leaving just over 55bp of cuts priced through ’25.

  • The next 25bp cut is not fully discounted until the end of the May meeting.
  • Our macro team still looks for cuts in February in May, meaning that the market-implied rate cutting cycle continues to look quite flat, in our view.
  • SONIA futures -1.5 to +0.5, the recovery from worst levels in bonds has pulled contracts off session lows.

BoE Meeting

Keep reading...Show less