Is another rate cut now off the table?

There are at least three good reasons why the chance of another rate cut this year by the MPC has receded. First, the incoming economic data has been better than expected. Second, there are growing concerns about a more disorderly sterling “crisis” and the potential upward impact on inflation. Third, there are lingering worries about both the effectiveness of another cut and the adverse distributional impact of the current policy stance, the latter highlighted by Theresa May last week.