Bank of England's interest-rate cut bets are moderating as UK's strong business activity data shows signs of sticky inflation. The Treasury will pay over £170 billion to the Bank of England due to quantitative easing-related costs. Economists urge the BOE to halt sales of long-dated government bonds to reduce losses for taxpayers. Fund managers are betting on BOE rate cuts after piling into government bonds, with a preference for a rate pause next month. UK bonds are priced better than other G7 debt, but concerns about inflation and fiscal policy remain.

BOE Interest Rate Cuts and Bond Sales