Bank of England could be about to open the door to interest rate cuts
Publishing timestamp: 2024-01-31 10:25:31
Summary
The Bank of England is expected to hold interest rates steady at 5.25%. Market observers will be watching for hints about future rate cuts. Recent economic data has shown progress in inflation persistence indicators, but wage growth and services inflation have been lower than projected. The article suggests that there may be no dissents in the vote, but if there are, a dovish dissent for a rate cut or a hawkish dissent for a rate hike are possible. The article also mentions that the UK economy has outperformed expectations and may see an upward adjustment to growth forecasts and a reduction in near-term inflation forecasts. Goldman Sachs predicts a 25 basis point cut in May, followed by further quarter-point increments until the bank rate reaches 3% in May 2025. JPMorgan expects the MPC to hint at potential easing of monetary policy in the summer but does not believe it will happen until August.
Sentiment: NEUTRAL
Keywords: goldman sachs group inc, inflation, breaking news: economy, jpmorgan drn, business news, central banking, interest rates, economy,