UK: Money markets don't expect negative rates in UK until August 2022

Money markets point to the Bank of England's (BoE) policy rate remaining above zero at least until 2022, Reuters reported on Wednesday.

In early February, money markets were expecting the BoE to lower the policy rate into negative territory as early as June 2021.

Market reaction

This headline doesn't seem to be having a significant impact on the British pound's performance against its major rivals. As of writing, the GBP/USD pair was up 0.23% on the day at 1.4143. Meanwhile, the UK's FTSE is virtually unchanged at 6,630.