BoE’s wage worries to cement slower pace of rate cuts

While leaving interest rates at 3.75% at the policy meeting on Thursday 5th February, the Bank of England will probably hint that the next rate cut isn’t imminent and imply that rates may not fall much further. But if our forecast that CPI inflation will settle below 2.0% later this year proves correct, then the Bank may cut rates to 3.00% rather than to the 3.50% or so investors’ expect.

We’ll be discussing the outlook for Bank of England, Fed and ECB policy in a 20-minute online Drop-In at 3pm on 5th February. (Register here.)