Deutsche Bank expect a line ball Bank of England rate cut this week, 5-4 vote in favour

Deutsche Bank are forecasting a close call at the Bank of England meeting this week:

  • 5-4 vote in favour of a 25bp cut
  • expect the Monetary Policy Committee to deliver its first rate cut of the cycle
  • this will lower the Bank Rate to 5%
  • think the case for a rate cut rests on a shifting reaction function within the MPC, including stronger reliance on its inflation projections, forward-looking indicators of wage and services prices, as well as firming real rates

This article was written by Eamonn Sheridan at www.forexlive.com. Source