UK rates markets have a full 25bps Bank Rate cut priced at 75% probability - RBS

Research Team at RBS, suggests that they are watching the Bank of England MPC rate decision on Thursday while the rates markets have a full 25bps Bank Rate cut priced at 75% probability.

Key Quotes

“Governor Carney may provide more guidance on (further) summer rate cuts. We are watching political manoeuvring in the UK, as Theresa May moves closer to becoming the new Conservative Party leader and Prime Minister.

We watch the UK property market and commercial funds following withdrawal suspensions. We watch US CPI on Friday in the aftermath of a mixed payrolls report.”