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An aggressive Fed move is unlikely to spur a surprise Bank of England rate cut
With traders preparing for the double impact of monetary policy decisions by both the Federal Reserve and the Bank of England, economists told CNBC that a “jumbo” rate cut by the former won’t deter the latter from a rate hold this week. Markets suggest a more than 60% probability of the Fed opting for a 50 basis point cut — rather than a 25 basis point reduction — on Wednesday, from its current rate range of 5.25% to 5.50%. Either way, this would be Fed’s first rate cut in the current cycle. Meanwhile, money market pricing for a BOE cut at Thursday’s September meeting dipped from 35% late Tuesday to 26% ... (full story)