Barclays Recommends Betting on Surprise BOE Rate-Cut Next Week

Traders are underestimating the chance of an interest rate cut by the Bank of England next week, says Barclays Plc, in the latest warning against the consensus that policy makers will keep borrowing costs on hold.

Money markets imply a 25% chance of a rate reduction, which is “at odds with what is likely to be a close decision,” strategist Moyeen Islam wrote in a note.