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Bank of England to Cut Rates in March, Timing of Further Cuts Unclear: Reuters Poll
A Reuters poll shows 65% of economists predict a 25 basis-point cut in March with rates potentially falling to 3.25% by year-end as inflation slows.
- A Reuters poll conducted Feb 10–16 found a majority of economists expect the Bank of England to cut Bank Rate in March, with 41 of 63 forecasting a 25 basis-point decrease to 3.50% on March 19.
- Economists expect January consumer price index to ease from 3.4% to 3.0%, with the Bank of England inflation target projected to be nearer by April or May.
- The MPC's 5–4 split and a 3.75% Bank Rate set the context, while Gilt-Edged Market Markers showed divided forecasts from 3.75% to 3.00%, with median rates at 3.25% by year-end.
- Economists remain split on timing, with a Reuters poll showing some expect a second rate cut later this year, but disagreement on whether it will be next quarter or the second half. Sanjay Raja, chief UK economist at Deutsche Bank, said he remains confident of two cuts.
- BoE officials warned underlying inflation remains elevated; 22 of 30 respondents expect second-quarter inflation to exceed 2.1%, with BoE inflation projections through 2027 above target.
14 Articles
14 Articles
Short-term trend turns negative below 210.00 handle
GBP/JPY snaps a two-day winning streak on Tuesday as weak UK labour market data fuels expectations of Bank of England (BoE) interest rate cuts, weighing on the British Pound (GBP). At the time of writing, GBP/JPY is trading around 207.28, down nearly 0.93% on the day and hovering near a two-month low. Following the UK labour market data, markets are now fully pricing in two rate cuts by the BoE this year, with expectations building for the first…
Poor jobs data increases likelihood of March BoE cut
A shock rise in unemployment and a drop in wage growth make the prospect of a base rate cut in March more likely, analysts say. The weaker picture has also increased the chances that base rate will fall to 3% by the end of this… The post Poor jobs data increases likelihood of March BoE cut appeared first on Mortgage Finance Gazette.
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