- Need to keep a restrictive stance on monetary policy
- That is to bear down on domestic inflation persistence
- Not unreasonable to believe that over the summer we will have enough confidence to consider rate cuts
- Rate cut likely to come under consideration in the summer
As things stand, traders are still looking to August for the first BOE rate cut. But a move in June is currently priced in near 50-50. It will all come down to the next UK inflation data print to settle the score there. The last two points on a summer rate cut is weighing slightly on sterling though. We're now seeing cable down 0.3% to 1.2523.
