From CNBC:

The Bank of England is expected to maintain its interest rates at 5.25%, despite a 96% probability of no change. Economic data has shown mixed signals, with upward inflation rates, stagnant growth, and a rebalanced job market. Projected votes show that monetary policy will remain data-dependent. Economists predict a potential rate reduction by May 2024 based on recent trends.

Notably, the services consumer price index (CPI) annual rate saw an uptick to 6.4% and U.K. headline inflation reached 4%. Despite an expected upswing in growth forecasts, projections signal a softer tightening bias with a 25-basis-point cut in May and further reductions until May 2025. JPMorgan U.K. Economist Allan Monks is foreseeing a potential easing policy around summer with a unanimous hold on rates, but no official announcements until August.

Overall, the Bank of England’s Monetary Policy Committee is expected to maintain rates with a data-dependent approach and a potential easing of monetary policy. While inflation rates are showing positive signs, the economy is still tenuous and might require future caution with possible rate reductions by May 2024.



Read more: Bank of England could be about to open the door to interest rate cuts