As my colleague Fawad Razaqzada noted yesterday, the big event for the UK is tomorrow’s Bank of England meeting: “The BoE is widely expected to raise rates by 25 basis point to 5.25%, although there is a risk of a repeat of June's surprise 50 bps hike – because of the fact that UK inflation is much higher than it is in other big economies.” Indeed, traders are pricing in about a 40% chance of a 50bps rate hike from Andrew Bailey and Company, so regardless of what the BOE decides, a significant portion of traders will be caught offsides, presenting a recipe for volatility in UK assets. Outside of the interest rate ... (full story)