Traders Ditch Bets on Second BOE Cut as Inflation Fears Spiral

Traders have priced out the probability of a second interest-rate cut from the Bank of England this year as the deepening conflict in the Middle East rekindles fears of inflation.

As recently as Friday, the market had viewed a second quarter-point cut by December as a done deal. But soaring energy prices, and concerns the war with Iran will drag on, have forced traders to rapidly reassess the outlook for monetary easing.