Analysts tip a June Bank of England rate cut. Or August ;-)

I posted earlier on a reluctant Bank of England:

• The Bank of England still has cold feet on rate cuts, reluctant to commit

The response and forecast from JP Morgan in that post come after Thursday’s dovish Bank of England communications:

• ForexLive European FX news wrap: BOE keeps bank rate on hold
• Why the dovish BoE didn’t trigger a more sustained drop in the GBPUSD pair?
• A quick summary of the BOE press conference

A couple of snippets now.

Capital Economics:

“We think some soft inflation and wages data may be enough to prompt it to cut rates at the next meeting in June, if not at the following meeting in August”

HSBC are also eyeing those two months:

• Bank of England has set the stage for a Summer rate cut
• Still a question if it’ll be June or later
• Both the BoE and ECB will cut interest rates before the Federal Reserve does

This article was written by Eamonn Sheridan at www.forexlive.com.