Traders Anticipate Rate Cuts from BoE and ECB; UK Futures Show 55 Bps Cuts by 2025, ECB Rate at 1.84%

Traders are increasingly anticipating interest rate cuts from both the Bank of England (BoE) and the European Central Bank (ECB). Current UK rate futures indicate expectations of approximately 55 basis points of BoE rate cuts by the end of 2025, an increase from 48 basis points noted on Friday. Concurrently, traders are also adjusting their forecasts for the ECB, now pricing in a deposit rate of 1.84% by year-end, down from 1.88% previously. This shift reflects a growing sentiment in the market regarding potential easing of monetary policy in both regions.