Interest Rate Cuts Are ‘Way Off’ Warns Bank of England Economist

Traders have scaled back their expectations of interest rate cuts by the Bank of England (BoE) this year after a top economist said imminent cuts were unlikely. Instead of anticipated six interest rate cuts, traders are now betting on just two to be announced by the BoE’s Monetary Policy Committee (MPC) in 2024. The rates are expected to begin to fall in either August or September. MPC member Megan Greene has warned that while the risk of inflation persistence is diminished in the UK, it remains higher than in other advanced economies. Writing in The Financial Times, she said market pricing has failed to reflect this....