Analysts forecast rate cuts by Bank of England, citing softer wage growth & inflation

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Analysts forecast rate cuts by Bank of England, citing softer wage growth & inflation

Snippets from analysts on the 2024 outlook for the Bank of England:

Goldman Sachs predict the first rate cut from the BoE in May, a 25bp rate cut to the Bank rate

• then further 0.25% cuts at each policy meeting until the base rate hits 3pc by May 2025
• citing  "softer sequential wage growth and inflation data"

Capital Economics forecast for the first Bank of England rate cut has moved to June (previously had tipped November)

• sees a reduction in the key rate from 5.25% to 3% in 2025

Deutsche Bank

• thinks rates could be cut to 4% by the end of 2024
• citing expectations for inflation to drop to the 2% target in April or May, and says a soft landing is the bank's base case

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Bank of England dates ahead for this year:

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Analysts forecast rate cuts by Bank of England, citing softer wage growth & inflation

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