BOE’s Mann: Markets are pricing in too many rate cuts

• In February, I thought markets were easing too much
• There is complacency about how long the BOE will hold rates
• In some ways, the BOE does not have to cut because the market already has done so
• The market curve in the UK is also importantly affected by the decisions of the ECB and Fed

It is relatively clear that she is one of the more hawkish members at the BOE. That considering she just only changed her voting intentions from a rate hike to a hold last week. For now, a decision on whether to cut in June or August remains finely balanced. I’m erring towards the latter but traders are pricing in ~67% odds of the former as well for now.

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