[MARKET UPDATE] Modest dovish reaction in BoE pricing following the unemployment/wage data, next cut remains priced in April but March is up to -21bps (pre-release -20.3bps). Timing for a 2nd 2026 cut brought forward to Nov. (pre-release Dec.)

The Bank of England's pricing reflects a modest dovish shift following the latest unemployment and wage data, suggesting that the market anticipates a rate cut in April, though a reduction in March is also being considered.

Newsquawk StaffPublished On the live feed at 2 more headlines followed before this page went public
Newsquawk headlinesUTC

Indian minister says Nvidia (NVDA) is working with some AI infrastructure and software companies

[ANALYSIS] US–Iran nuclear talks expected to resume in Geneva at 08:30 GMT/ 03:30 EST

[MARKET UPDATE] Modest dovish reaction in BoE pricing following the unemployment/wage data, next cut remains priced in April but March is up to -21bps (pre-release -20.3bps). Timing for a 2nd 2026 cut brought forward to Nov. (pre-release Dec.)

Spanish PM Sanchez says the Council of Ministers will invoke Article 8 to ask the Public Prosecutor to investigate Meta (META), X and TikTok

BofA Fund Manager Survey: Commodity overweight at the highest since December 2022, Equity overweight at the highest since December 2024

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Free. No signup, no card.
  • We await Wednesday's CPI data before the final call on March vs April can be made.
  • In short, the morning's data had a clear dovish skew, as the unemployment rate continues to tick up (though the BoE does forecast this) and the wage metrics both moderated from the prior rate, with the incl. bonus figure markedly cooler.

BoE Pricing

  • Mar -20.8bps (prev.-20.3bp)
  • April -27.4bps (prev. -26.3bps)
  • Jun -38bps (prev. -35.6bps)
  • Nov -51bps
  • Dec -50bps (prev. -50.6bps)
Context

With unemployment rising and wage growth moderating, the data reinforces expectations of a more accommodative stance from the BoE, which could influence GBP and bond markets ahead of the upcoming CPI release.

Related headlines

The whole workspace, free to try.

Try it free