Reuters poll on Bank of England expectations. 63 economists interviewed:
- 31 see June cut
- 30 see Q3
- 2 say November
The report adds a summary of our situation:
- Governor Andrew Bailey and Deputy Governor Dave Ramsden recently said UK inflation was falling in line with central bank forecasts and the risk of it remaining stuck too high had diminished.
- “It’s between June and August, we’re leaning slightly towards August because one of the key things the Bank is looking at is services inflation,” said James Smith, economist at ING Financial Markets. “If services inflation is a little more stubborn, I think that tips the scales a little more towards August than June, but to be honest it’s a pretty close call.”
On Wednesday, a few BoE officials appeared to throw cold water on the idea of a June cut, sending sterling higher:
- BoE pill: the time for a rate cut is still far away
- The BoE pill says it sees signs of a decline in the persistence of inflation
- Haskel (BOE): High inflation will persist unless the labor market weakens
This article was written by Eamonn Sheridan at www.forexlive.com.
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