Bank of England's Interest-Rate Decisions

Bank of England's interest-rate cut bets are moderating as UK's strong business activity data suggests signs of sticky inflation. The Treasury will pay over GBP170 billion to the Bank of England due to quantitative easing-related costs. Economists urge the BOE to halt sales of long-dated government bonds after a collapse in bond prices threatened losses for taxpayers. Fund managers are betting on the BOE to cut interest rates after piling into government bonds, with two key data releases determining the likelihood of rate cuts. The Bank of England's decision to halt rate hikes temporarily provides hope for British government bonds, which have experienced losses in recent years.