Financial markets and analysts appear convinced that policy rates will be left on hold at the conclusion of the MPC meeting on Friday 5th February, but we aren’t so sure. We think the recent sharp drop in headline inflation could be enough to trigger a 25bp rate cut. Beyond the coming meeting, we also think that markets are too hawkish in pricing in modest rate hikes over the next 12-18 months.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services