A 75bps cut the next step to 1% rates

With the economy plunging into recession and inflation risks rapidly receding, interest rates clearly need to fall considerably further. Accordingly, we expect the Monetary Policy Committee (MPC) to cut rates by 75 basis points at the coming meeting, with a bigger and/or earlier move possible. What’s more, we now expect rates to fall to an unprecedented low of 1% next year.

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