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.
