Slight dovish tilt, and BoE will become more dovish before long

With the Bank of England striking a slightly more dovish tone whilst keeping interest rates at 5.25% and inflation likely to fall further and faster than the Bank expects, we still think a rate cut in June is possible and that rates will fall to 3.00% in 2025 rather than to 3.75-4.00% as currently priced into the market.

Note: We’ll be discussing the outlook for Fed, ECB and Bank of England policy in a 20-minute online briefing at 3pm GMT on Thursday 21st March. (Register here.)

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