Banking situation appears to be stabilising, but risks remain

Even if policymakers are successful at putting a firewall around the recent problems in the global banking system, some damage to the UK economy may already have been done. And while we think inflation concerns will mean that the Bank of England raises interest rates by 25 basis points next Thursday, from 4.00% to 4.25%, it’s a close call and we've become a bit more confident in our view that next year rates will be cut further and faster than investors currently expect.

We’ll be discussing the outlook for rates in a 20-minute “Drop In” online briefing at 3pm GMT on Thursday 23rd March. (Register here.)