Investors have bet the Bank of England will have to raise interest rates as many as three times before the end of the year, The Telegraph reports.
Swap rates - the key money market measure reflecting traders' expectations for borrowing costs - rose at the fastest rate since Black Wednesday 16 years ago after a "shocking" rise in factory gate inflation. In scenes described by one observer as "carnage", traders embarked on a massive sell-off of UK government bonds, pricing in the likelihood that the Bank's Monetary Policy Committee will lift the official base rate to 5.75% by the end of the year. HOUSE SALES SLUMPED to a 30-year low last month, raising fears that the downturn in the housing market could turn into a crash, according t...
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