The Bank of England’s next monetary policy move is now wide open, following a significant downside surprise in the August inflation print out earlier on Wednesday. Prior to the August consumer price index reading, the market was pricing in an 80% chance that the central bank would hike interest rates by 25 basis points on Thursday to 5.5% — the highest level since December 2007. Market pricing swung drastically after the annual headline CPI print fell to 6.7% in August from the 6.8% of July, defying a consensus forecast that it would rise to 7%. Shortly after 12 p.m. London time, the probability that the Bank will ... (full story)