According to Jin10, market pricing showed on Thursday that investors did not fully price in a 25-basis-point rate hike until the Bank of England's February 2026 meeting. LSEG data showed that as of the Bank of England's December 17 rate decision, markets were pricing in a cumulative 24.3 basis points of tightening, below the more than 25 basis points seen for most of August, while the cumulative amount priced in for the February 4 rate decision was 36 basis points. Markets priced in less than 4 basis points of tightening for the Bank of England's September meeting, implying only about a 15% chance of a hike, compared with 24 basis points priced in for the European Central Bank's September meeting. Data released last week showed that Britain's July inflation rate rose to 2.9% because of higher household energy bills, while the labor market remained subdued, a key source of long-term inflation concern for members of the Bank of England's Monetary Policy Committee.