BoE: A quarter per quarter – Rabobank
Source Fxstreet
The Bank of England’s MPC cut the benchmark rate by 25bp to 4.75%. This was fully expected by analysts and markets. The vote was split 8-1, with only Mann dissenting, Rabobank’s Senior Macro Strategist Stefan Koopman notes.
The next cut to 4.50% to commence in February
“The theme of gradualism remains key. Governor Bailey gave no spoilers, but we continue to interpret this as a quarter per quarter. We expect the next cut to 4.50% in February.”
“The MPC thinks the Budget adds to both growth and inflation, so it can’t cut interest rates too quickly or by too much. That said, it also thinks inflation will be under control with Bank rate falling to 3.7% by the end of 2025.”
“We also forecast Bank rate ending up at 3.75% in late 2025.”
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Once again, the price of Ethereum (ETH) has risen above $3,900. This bounce has hinted at a further price increase for the altcoin before the end of the year.
Gold (XAU/USD) attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels.
Silver price retreats during the North American session nearly 1%, after reaching a daily high of $78.20.
Gold price (XAU/USD) extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday.
Gold (XAU/USD) attracts some follow-through selling for the second straight day and slides to the $4,922 area during the Asian session on Tuesday amid thin liquidity on the back of the Lunar New Year holidays in China.
