BOE’s Pill: We can cut interest rates while maintaining restrictive policy stance

• Need to keep a restrictive stance on monetary policy
• That is to bear down on domestic inflation persistence
• Not unreasonable to believe that over the summer we will have enough confidence to consider rate cuts

As things stand, traders are still looking to August for the first BOE rate cut. But a move in June is currently priced in near 50-50. It will all come down to the next UK inflation data print to settle the score there.

This article was written by Justin Low at www.forexlive.com.