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New interest rate forecast – first cut sooner, end destination is 3%

In a change to our previous forecast, we now think that the first interest rate cut from the Bank of England will happen in June this year rather than in November. We still think that interest rates will be reduced from 5.25% now to 3.00% in 2025. That’s a little lower than the trough of 3.25% currently priced into the financial markets.

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