Investors increase their bets on a 100 basis-point BoE rate hike

© Reuters. FILE PHOTO: People stand outside of the Bank of England in London, Britain, October 10, 2022. REUTERS/Hannah McKay

LONDON (Reuters) – Investors increased their bets on the its benchmark rate by a full percentage point on Nov. 3 after the government of British Prime Minister Rishi Sunak delayed an announcement of its tax and spending plans until mid-November.

Interest rate futures put the chance of a 100 basis-point rate hike by the BoE at about 37%, higher than before the announcement of the delay.

Earlier this month investors sharply scaled back their nearly 100% bets on such a big borrowing costs increase after new finance minister Jeremy Hunt ripped up the economic plans of former prime minister Liz Truss last week, before she resigned.