The Bank of England will probably strike a balance between the recent weak news on activity and the stronger news on price pressures by cutting interest rates by a “gradual” 25 basis points (bps), from 4.75% to 4.50%, at the policy meeting on Thursday 6th February. And while we don’t expect the Bank to speed up the pace of cuts, we think rates will fall to 3.50% early next year rather than to 4.00% as investors expect.
We’ll be discussing the outlook for UK interest rates in a 20 minute online Drop-In at 3pm GMT on Thursday 6th February. (Register here.)
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