Reported about 1 year ago
At least one trader is anticipating a big rate cut from the Bank of England next month, placing a significant bet in the options market that could result in a £8 million payday if policymakers slash borrowing costs by 50 basis points to 4.75%. This wager stands out as a bold move amidst uncertain market expectations, with traders divided on the likelihood of an August rate cut. The bet involves over 60,000 options on SONIA futures, reflecting the trader's confidence in a substantial rate reduction.
Source: YAHOO