Today’s announcement of high core inflation in the UK has not been well-received by the market. This suggests that the Bank of England (BOE) may be pressured to take actions that could result in an economic recession. The current market predictions indicate that there is a probability of 57% for a 25 basis point reduction tomorrow, and a 43% probability for a 50 basis point reduction.

According to pricing data, there is a higher chance of a hike to 6% by the end of the year, instead of the 5.5% predicted by Goldman Sachs.