Inflation Data Bank of England Wednesday could cause the market to think twice about their latest betting that interest rates will remain on hold until 2012, despite the short-term outlook is likely to be grim.
The market wants an increase in interest rates the Bank first since 2007 swinging from one extreme to another in the last three months. At the time of the February Inflation data see market opportunities 90 percent increase in interest rates in May. Now February 2012 is on ter early when they see the certainty of the Bank interest rates higher.
“The market seems to have gone too far,” said Jens Larsen, Economist of the Royal Bank of Canada. “Three months ago, I thought I was one of the few people who say that the rise in interest rates will not come until November Now my relative change more hawk.”
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