No more cuts this year, but rates to fall to 3.00% next year

The Bank of England will leave interest rates at 4.00% at its policy meeting on Thursday 18th September, but may announce a bigger scaling back of quantitative tightening (QT) than most expect. Our new forecast is that the Bank won’t cut interest rates again this year. But we still think rates will be reduced to 3.00% next year instead of to 3.50% as investors expect.

We’ll be discussing the outlook for Bank of England, Fed and ECB policy in an online Drop-In at 3pm on 18th September. (Register here.)