Money markets are wagering that the Bank of England will raise its key rate to 0.5% next year from 0.1% currently, likely in two installments. Traders now see an additional quarter-of-a-percentage-point of tightening by December 2022, on top of a 15-basis-point hike that was already priced for May. The shift in market expectations follows a change in forward guidance from the BOE last month as it foresees some “modest tightening.” Governor Andrew Bailey said he is among officials who think a minimum criteria for tighter U.K. monetary policy has been met in comments made last week. It’s a sharp turnaround from the ... (full story)