BoE: Another Cut in the Pipeline

The Bank of England held interest rates at 3.75% in a 5-4 vote, a result more dovish than consensus expectations, signaling an imminent cut.

Key Takeaways

• 1.The Bank of England held rates at 3.75% in a narrow 5-4 vote, signaling that further rate cuts are likely soon.
• 2.MPC concern regarding sticky inflation is easing due to faster-than-expected CPI decline and slowing wage growth expectations.
• 3.Berenberg forecasts a total of 75bp in rate cuts for 2026, more aggressive than the current market pricing of 44bp.

Table of Contents

• Closing in on another cut
• Inflation reassurance
• Forecasts and risks
• Berenberg view

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