Published by Global Banking and Finance Review
Posted on April 3, 2025
LONDON (Reuters) - Investors added to bets on the Bank of England cutting interest rates on Thursday as global markets braced for a hit to trade and growth caused by U.S. President Donald Trump's decision to impose import tariffs on dozens of countries including Britain.
Interest rate futures pointed to about 60 basis points of reductions to the BoE's benchmark Bank Rate by December, compared with around 54 bps on Wednesday which represented a full pricing of two quarter-point rate cuts.
On Wednesday, Trump announced tariffs of 10% on UK exports to the United States, 20% on goods from the European Union and higher duties on other countries including 54% on China.
(Reporting by Suban Abdulla; Editing by William Schomberg)
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