© Stocksak. FILE PHOTO – People stand outside of Bank of England in London (Britain), October 10, 2022. REUTERS/Hannah McKay
LONDON, Stocksak – Investors increased the odds of the Bank of England raising its benchmark interest rate by a full percentage on Nov. 3. This was after Rishi Sunak’s government delayed announcing its spending and tax plans until mid-November.
The chance of a BoE 100-basis-point rate increase is now at around 37%, higher that before the delay announcement.
Investors cut their almost 100% bets earlier this month on such a large increase in borrowing costs after Jeremy Hunt (new finance minister) ripped up the economic plans by Liz Truss, former prime minister.