From 25m ago 02.18 EST Investors bet on Bank of England interest rate cuts early next year UK interest rates could start to be cut as early as March, some City investors believe, after Wednesday’s welcome drop in inflation. The money markets are pricing in a sharp fall in UK borrowing costs, after the UK inflation rate dropped to 3.9% in November, a bigger fall than expected. Bank rate is currently 5.25%, a 15-year high. Investors now see a 40% chance that rates will be cut in March 2024, to 5%, with a cut by May 2024 now priced in. UK interest rates are seen falling below 4% by the end of 2024, with the money markets now pricing…
