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Deutsche Bank: Expects Bank of England to Cut Interest Rates Only Once This Year
Summary: According to Deutsche Bank analyst Sanjay Raja, the latest policy decision by the Bank of England may lead to a reevaluation of the future policy path. Raja stated that the balance between rising inflation and a weak labor market has increased uncertainty in the policy path. Due to a 4-4-1 vote result, internal divisions within ...
According to Deutsche Bank analyst Sanjay Raja, the latest policy decision by the Bank of England may lead to a reevaluation of the future policy path. Raja stated that the balance between rising inflation and a weak labor market has increased uncertainty in the policy path. Due to a 4-4-1 vote result, internal divisions within the Monetary Policy Committee have intensified, giving the impression that the constraints on bank rates are less restrictive than before. Deutsche Bank currently predicts that the Bank of England will only cut interest rates once in November this year, compared to the previous expectation of two cuts, although this may be delayed until December. It is expected that rate cuts will occur quarterly, with the final rate reaching 3.25% by the second quarter of 2026.
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Link: Deutsche Bank: Expects Bank of England to Cut Interest Rates Only Once This Year [Copy]
