Bank of England Could Still Cut Rates in Fourth Quarter -- Market Talk

Dow Jones03-25 17:44

0944 GMT - U.K. inflation should return to target in 2027, giving the Bank of England room to cut rates later this year, Andrew Wishart at Berenberg says in a note. The country's annual rate of inflation held steady at 3.0% in January. "In the absence of the conflict we would have taken this as an encouraging sign that inflation would soon return to target," he says. While the energy crisis risks creating a price spiral in other areas, a sluggish economy and weak labor market should limit this, allowing inflation to fall below 2% next year, Wishart says. "Therefore, the BOE would be wise to keep rates on hold while it monitors the passthrough rather than hike. We think it will, before delivering another cut in 4Q." (don.forbes@wsj.com)

 

(END) Dow Jones Newswires

March 25, 2026 05:44 ET (09:44 GMT)

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