BOE rate hike odds for this week now a near coin flip

<p>It was roughly ~80% prior to the data and here's how the change looks on the OIS curve:</p><p>Essentially, markets are pricing in just one more rate hike for this cycle by the BOE (implied rate currently at 5.18%). It was already the case before the CPI report but the latest pricing confirms that even more, as traders firm up their conviction.</p><p>I still see the BOE raising the bank rate again this week, as they should take every opportunity that they still can do so. But if inflation continues on its current trajectory, they have added flexibility to pause from November onwards at least. That especially since economic conditions have declined quite rapidly in the past few months.</p>

This article was written by Justin Low at www.forexlive.com.