Bank of England may eventually cut rates below 3.50%

The Bank of England sounded a bit more dovish while leaving interest rates at 4.25% today, despite the extra upside risks to inflation from events in the Middle East. This supports our view that the Bank will cut rates to 4.00% in August and eventually to 3.50% (or perhaps lower).

We’re discussing the outlook for Bank of England, Fed and ECB policy in a 20-minute online Drop-In at 3pm BST today. (Register here.)

And at our in-person Roundtables in London on Tuesday 1st July, clients can discuss with our economists and their peers how the government has influenced the economy in its first year in office. (Register here.)