Bank of England (BoE) decided to cut rates by 25 bps to 4.5% in line with market expectations. Now, the bank expects 1 or 2 further rate cuts in 2025. BoE governor, Bailey commented that the bank is taking gradual and careful approach to cuts.
- BoE predicts that inflation will peak at summer at 3.7% YoY due to energy prices; reaching the 2% target in Q4 2027
- UK inflation will hit 2.7% in Q1 2027 and 1.9% in Q1 2028 according to
- BoE Mann and Dhingra voted by 50 bps cut, overall all 9 BoE MPC members voted to lower rates
- UK GDP growth forecast was lovered to 0.75% vs 1.5% previously; BoE predicts that UK economy contracted by 0.1% in Q4 2024
GBPUSD weakened after the decision of Bank of England; market sees BoE stance as quite dovish, while the United Kingdom experiences a serious problems with economic growth.
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Source: xStation5
