The Bank of England wants to appear the least likely major central bank to cut interest rates after missing its inflation target by a wider mark than its peers. But it can only play this game for so long before weakening economic data forces its hand. If the Federal Reserve cuts rates this spring, the UK central bank will be left out on a limb. European Central Bank President Christine Lagarde last week laid the groundwork for an eventual lowering of its deposit rate — an approach the BOE should heed.

Britain is no longer an outlier with higher residual inflation; consumer price increases have moderated after reaching double digits, with many economists expecting inflation to drop back to the BOE’s 2% target in the coming months.

QOSHE - BOE Needs to Talk About Talking About Interest-Rate Cuts - Marcus Ashworth
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BOE Needs to Talk About Talking About Interest-Rate Cuts

5 1
30.01.2024

The Bank of England wants to appear the least likely major central bank to cut interest rates after missing its inflation target by a wider mark than its peers. But it can only play this........

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