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LONDON: Investors on Tuesday put a 40% chance on the Bank of England pausing its run of interest rate increases at its March meeting next week after the failure of U.S. lender Silicon Valley Bank (SVB).
Interest rate futures suggested the likelihood of no change in Bank Rate on March 23 was about 40% at 0813 GMT having been close to 50% earlier in the session. Last week, the chance of a BoE rate hike pause was seen at around 10%.
Bets on a quarter-percentage point rate hike stood at about 60% on Tuesday.
Expectations about a Federal Reserve rate hike this month have also fallen sharply after the collapse of SVB. (Writing by William Schomberg, Editing by Paul Sandle)