(Bloomberg) -- Here's one consequence of the Brexit deal the U.K. and European Union finally sealed on Thursday: money markets see a much lower chance that the Bank of England will cut interest rates next year.
Just two days ago, the market was pricing a full 25 basis-point decrease by November 2020 after policy maker Gertjan Vlieghe said continued Brexit uncertainty would probably require further monetary stimulus.
Now money markets see only a 60% chance that the central bank will lower its benchmark interest rate by 25 basis points by that time, according to MPC-dated Sonia swaps data from TP ICAP Plc.
To contact the reporter on this story: James Hirai in London at jhirai3@bloomberg.net
To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net, Paul Dobson, Anil Varma
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