The market didn't like today's high UK core inflation reading and is signaling that the BOE will have to send the economy into a recession. Current market pricing shows a 57% chance of 25 bps tomorrow and 43% chance of 50 bps.
Pricing also shows a 75% probability the BOE will have to hike to 6% by late in the year, rather than the 5.5% that Goldman Sachs is forecasting.
