Sounding hawkish, but data may soon change the BoE’s tune

At the policy meeting on Thursday 21st March, the Bank of England will almost certainly keep interest rates unchanged at 5.25% for the sixth time in a row and retain its hawkish guidance. But we suspect the data will allow for rate cuts sooner than the Bank suggests and we still think rates will fall to 3.00% in 2025 rather than to 4.00% as priced into the market.

Note: We’ll be discussing the outlook for Fed, ECB and Bank of England policy in a 20-minute online briefing at 3pm GMT on Thursday 21st March. (Register here.)

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.