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Can the BoE cut rates earlier and faster than the Fed?

Even if the US Federal Reserve leaves its policy rate unchanged for longer than we expect, our forecast that inflation in the UK will be lower than in the US suggests this won’t prevent the Bank of England from cutting rates from 5.25% to 5.00% in June and to 3.00% next year. But the Bank will be alive to the risk that inflation proves more resilient as it has in the US.

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