BOE Interest-Rate Path Divides Traders and Economists Ahead of Expected Hike

BOE Interest-Rate Path Divides Traders and Economists Ahead of Expected Hike In today’s Markets Daily UK: Traders and economists are at odds on where the BOE goes after this week’s interest-rate decision, plus AB Foods and Hiscox report earnings. Throughout the day, get the latest news and analysis on the Markets Today live blog. The budget may have proved uneventful for gilts, but this week has the potential to be a lot more interesting. There’s the geopolitics: UK bonds outperformed peers on Monday as diplomatic overtures in the Middle East drove down oil prices and quelled inflation fears. And more volatility could be on the way, depending on the reaction from the White House as US mid-term voting kicks off. But the main domestic event comes on Thursday, when the Bank of England is expected to deliver a long-awaited interest-rate hike. Traders and economists see that largely as a done deal, so the future path of gilts will depend on commentary from policy makers as well as the BOE’s forecasts for growth and inflation.