Following the UK CPI report, traders increased the BoE easing bets with the December cut probabilities rising to 85% vs 80% before the data release.
By the end of 2026, the market sees 63 bps of easing compared to 59 bps before the inflation data.
We haven’t seen big moves in GBP following the data because the December cut probabilities were already high and the data came out basically in line with expectations.
This article was written by Giuseppe Dellamotta at investinglive.com.