The Monetary Policy Committee is expected to raise rates by 50 basis points next week following its first meeting of the year. Bloomberg Economics believes that this move will bring the Bank of England closer to the rate limit in the current bullish cycle, although the Central Bank is likely to refrain from giving clear signals. Money markets are also changing their expectations. For the first time since August, at the beginning of this week, swap quotes showed with 100% probability a rate cut by a quarter point by the end of the year. Rates are expected to continue to rise next month before peaking at 4.4% in the summer. This is reflected in the pricing of currency options. The weekly Risk Reversal indicator (the difference between the prices of Call and Put options) for the GBP/USD pair is becoming less bearish. #gbp/usd