FKU - Bank of England To Use June Meeting To Lay The Ground For A Summer Rate Cut
2024-06-14 06:30:00 ET
Summary
- Six things to watch out for at the Bank of England’s June meeting.
- The swaps curve is pricing barely a 5% chance of a rate cut.
- The BoE, much like the European Central Bank, has been telling us that it is becoming more confident in its forecasting ability.
- Trade-weighted sterling has recently risen to levels last seen in July 2016 when the Brexit tsunami hit.
By James Smith | Chris Turner | Michiel Tukker
Will the Bank of England cut rates on Thursday?
Markets overwhelmingly think the answer to this question is no. The swaps curve is pricing barely a 5% chance of a rate cut. Much of that is down to the latest inflation data , but clearly the timing of the 4 July election is a factor, too. Investors reckon the Bank is highly unlikely to cut interest rates in an election campaign....
Bank of England To Use June Meeting To Lay The Ground For A Summer Rate Cut