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Traders defy BoE by holding tight to bets for rapid rate hikes
A clash is brewing between markets and the Bank of England. As a recession looms over the economy, the central bank has signalled it’s wary of tipping the UK over the edge by moving too aggressively. But money market traders are holding tight to bets for a rapid tightening. It’s putting a spotlight on the challenge facing BoE officials, who say they’re treading a fine line to keep the economy on track. But with inflation running so hot, investors argue that policy makers don’t have the luxury of being cautious and need to risk crashing the economy to stop price pressures from spiralling out of control. “There is a dichotomy between BoE guidance and rate-market pricing,” said Imogen Bachra,

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