BOE’s Broadbent: It is possible that a rate cut could come this summer

• Less restrictive rates will depend on how the data is evolving
• But rates will have to be less restrictive at some point
• It is unclear how long second-rounds effects of inflation could persist

This just reaffirms that markets are right to consider a move for August at least, with traders pricing that at a ~98% probability. A move in June is also potentially on the cards, depending on what we get from the next two UK CPI prints – the first of which will be on Wednesday this week. A June move is currently ~58% priced in.

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