Investors reel in Bank of England rate hike bets after inflation shock

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Investors reel in Bank of England rate hike bets after inflation shock
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LONDON, Sept 20 - Investors scrambled to reel in bets that the Bank of England will raise interest rates again on Thursday after weaker-than-expected inflation data suddenly made that prospect much less certain.

As of 0735 GMT, overnight index swaps pointed to a 45% chance that the BoE will keep interest rates on hold on Thursday - up from 20% on Tuesday. The inflation data follows signs of a weaker economy and a drop in pay settlement data published earlier on Wednesday.

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