Reuters is out with a poll of UK economists and they now see a soon start to the BOE rate cutting cycle.
The next BOE meeting is on Dec 14 and 68 of 69 economists see no change in the 5.25% with one seeing a 25 bps cut (there’s always one).
Where the poll gets interesting is in Q2 where 24 of 62 economists now see a cut; that rises to a majority in Q3. Moreover, the median sees 50 bps of cutting in Q3 compared to just 25 bps in a poll last month.
Markets see a 50% chance of a cut in June and a cut is fully priced in for the August 1 meeting with a second cut priced in for November and a good chance of another in December, totalling 62 bps of easing priced in.
This article was written by Adam Button at www.forexlive.com. Source