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Money markets raise bets on the Bank of England (BoE) turning interest rate negative as the UK enters a full lockdown, Reuters reported on Tuesday. 

Money markets currently see implied rates below 0% from May, compared to June at the end of 2020, and fully price a 10 basis points cut by August.

Market reaction

This headline doesn’t seem to be having a significant impact on the British pound’s performance against its rivals. As of writing, the GBP/USD pair was clinging to small daily gains at 1.3580.