Trading interest rate announcements

[neilcharlton]

If you think the UK bank of england will raise interest rates , is there any financial instrument that you can use to profit from the prediction ?
Liffe future ? Option % , spread bet , interest rate swaps ????
Thanks .

 

[donaldduke]

IG Index are currently quoting the following spreads for the UK base rate.

May 04 : 420 424
June 04 : 423.5 428.5

Normally any expect edincrease/decrease is priced in, to make real money you have
to predict the bank will do the something the markets are not expecting.