Bank of England on the cusp of rate cuts
by AIB Treasury Economic Research Unit
- The May meeting of the Monetary Policy Committee (MPC) was an important staging post towards a first rate cut this summer
- Moreover, Governor Bailey struck a dovish tone at his press conference, as he outlined stronger GDP growth forecasts
compared to the last MPR in February, alongside lower inflation projections over the forecast horizon, based on current market
rate expectations.
- On the UK GDP data, the out-turn for Q1 2024 was stronger than expected.
- While stronger GDP data might give the BOE pause ahead of its June meeting, the focus will be on inflation rather than growth
out-turns.
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