Money markets raise bets for UK rate hikes - CME

LONDON - Money markets ramped up bets of a November interest rate increase as soon as next month after a relentless rise in yields last week and hawkish comments from policymakers raised expectations of Britain's first post-pandemic interest rate hike.

Interest rate futures traded on the CME showed November contracts were pricing in as much as a 20% probability of a rate hike next month compared to 12% last week while December futures were pricing in a 45% probability of a rate increase by then.

Bank of England policymaker Michael Saunders told households to get ready for "significantly earlier" interest rate rises as inflation pressure mounts in the British economy, the Telegraph newspaper said on Saturday.