Skip to main content

Could the BoE tee up a June rate cut?

The Bank of England will almost certainly leave interest rates at 5.25% on Thursday 9th May and we suspect it will imply it’s still not quite ready to cut rates. That said, there’s a chance it instead indicates that the first rate cut will be in the coming months. Either way, our forecast that inflation will fall faster than the Bank expects may mean rates are first cut in June and fall to 3.00% next year. That compares to market pricing for an August cut and a low of just 4.00%.

We’ll be discussing the outlook for Bank of England policy in a 20-minute online briefing at 3pm BST on Thursday 9th May. (Register here.)

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

Get access