abrdn: Signalen BoE suggereren meer renteverlagingen dit jaar

abrdn: Signalen BoE suggereren meer renteverlagingen dit jaar

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Luke Bartholomew, Deputy Chief Economist at abrdn, comments on today's Bank of England meeting:

'The decision to cut rates today was widely anticipated. But the fact that two MPC members voted to deliver a bumper 50bps cut, despite revising up near term inflation forecasts, gives a sense of how concerned some policymakers are about the headwinds to growth. It is hard to see the Bank of England materially stepping up its pace of easing until it sees how the increase in National Insurance is digested by the economy in the spring. However, the Bank’s signals today suggest there is scope for several more rate cuts this year, given the weak growth outlook, and we continue to see rates below 3% over the next two years.'