Traders Trim BOE Rate-Hike Bets, No Longer Fully Pricing Four Increases

The pullback in BOE tightening bets shows how quickly energy-driven inflation expectations can reverse, with markets now pricing less than four full hikes by end-2023. This matters for rate-sensitive sectors and sterling, as the BOE's Thursday decision will reveal whether policymakers validate or push back against the market's reduced path. The open question is whether the retreat in swaps persists if energy prices stay volatile, or if the Fed's decision later today re-anchors global rate expectations.