Citi Macro: Investors are lowering their expectations of an increase in the UK benchmark interest rate.

After recent data from the UK signaled a weakening economy, investors have continued to lower their expectations for the Bank of England to raise interest rates in the coming months. Last week's UK employment data showed that wage growth was below expectations and the unemployment rate slightly increased. Jennifer McKeown of Capital Economics stated in a report, "We believe that weakening labor market activity will continue to dampen wage pressures and underlying inflation." Data from the London Stock Exchange Group shows that the market currently reflects an expectation of a total increase of 38 basis points in the UK benchmark interest rate by 2026, lower than the 54 basis points increase expected last week.