BoE Watch: UK rates to be cut slower but perhaps further than investors expect

The Bank of England will almost certainly cut interest rates from 4.50% to 4.25% on Thursday 8th May. But we think the markets have got ahead of themselves in expecting interest rates to be cut by 25bps four times this year. That said, the risks are tilted towards rates eventually falling further than investors expect, perhaps to a low of 3.00% rather than to 3.50%.

We’ll be discussing the outlook for Bank of England, Fed and ECB policy in a 20 minute online Drop-In at 2pm BST on Thursday 8th May. (Register here.)