BOE to hold rates before cutting twice later, BofA says
Bloomberg · Just In
Bloomberg
Just In
Bank of America UK Economist Sonali Punhani says there is "some small window" for the Bank of England to cut interest rates in November, but uncertainty on the timings of possible cuts remains.
Breakdown
- Bank of England is expected to keep rates steady before making two cuts later.
- Weakness in the labour market and moderating pay growth are key factors for future cuts. 4s
- Analysts project a terminal rate of 3.5%, with less certainty on the timing of cuts. 51s
- Potential fiscal consolidation in the autumn budget could influence BOE decisions. 20s
- The risk of inflation causing further wage increases is seen as less likely due to weaker labour market conditions. 2m 7s