After all MPC members backed the initial hike and one favoured a larger move, traders upped bets on a second consecutive Bank of England rate increase. The interest-rate swap market now prices roughly a 50% chance of a 25bp December hike, up from about 30% before the decision; markets also foresee nearly three additional 25bp hikes by the end of next year. Repricing pushed UK two-year gilt yields up as much as 5bp to 4.79%, while sterling held near $1.3465. Mitsubishi UFJ international fixed-inc

After all MPC members backed the initial hike and one favoured a larger move, traders upped bets on a second consecutive Bank of England rate increase. The interest-rate swap market now prices roughly a 50% chance of a 25bp December hike, up from about 30% before the decision; markets also foresee nearly three additional 25bp hikes by the end of next year. Repricing pushed UK two-year gilt yields up as much as 5bp to 4.79%, while sterling held near $1.3465. Mitsubishi UFJ international fixed-income strategist Hank Calenti said he does not expect the Bank of England to wait until February to act and that, unless there are clear signs high rates are weighing on the economy or durable peace emerges in the Middle East, the Bank is likely to hike again in December.