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Deutsche Bank: The Bank of England is expected to keep interest rates unchanged, and confidence in interest rate cut expectations has declined
According to market consensus, the Bank of England is likely to keep interest rates unchanged at 5.25% for the fifth time in a row at Thursday's meeting. Sanjay Rajah, chief UK economist at Deutsche Bank, said that given the weak growth and inflation and weak wage data, an 8-to-1 vote is now more likely (with Dingla voting for a rate cut). For now, the Bank of England is sticking to its forecast of a rate cut in May. But our confidence has fallen, especially as the MPC has given little signal on when rate cuts are likely to begin.