December 27, 2024 14:13 GMT
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 |
SONIA BoE-Dated OIS (%)
Difference vs. Current Effective SONIA Rate (bp)
Feb-25
4.551
-14.9
Mar-25
4.528
-17.2
May-25
4.418
-28.2
Jun-25
4.381
-31.9
Aug-25
4.286
-41.4
Sep-25
4.253
-44.7
Nov-25
4.185
-51.5
Dec-25
4.146
-55.4
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