The Bank of England is facing a stormy gilts market while Turkey’s new governor is expected to ramp up rates sharply at central bank meetings in the week to come.
Markets show traders are placing an almost one-in-five chance the BoE will raise rates by half a point next week, up from near zero at the start of June. Even if the bank raises by this much, will it do the trick?Tundra trucks and Sequoia SUV's exit the assembly line as finished products at Toyota's truck plant in San Antonio, Texas on April 17.
Right now, money markets put the odds of a hike, or a hold, at a coin toss for July, but either way, by November at the latest traders are certain rates will be 50 basis points higher than now. Cautious optimism is in the air in London as well, where Western policy makers are gathering on June 21-22 for the Ukraine Recovery Conference to tackle issues from short-term financing, to long-term reconstruction costs. The event is held after the breach of the huge Soviet-era dam on the Dnipro river, which experts warn will have a huge impact not only on Ukraine but also on global food security.