Under half of analysts expect a BoE rate cut in June

Reuters poll on Bank of England expectations. 63 economists surveyed:

• 31 see June cut
• 30 see Q3
• 2 say November

The report from adds a summary of where we are at:

• Governor Andrew Bailey and Deputy
  Governor Dave Ramsden have recently said UK inflation was
  falling in line with the central bank’s predictions and the risk
  of it getting stuck too high had receded.
• “It is between June and August, we are leaning slightly
  towards August on the basis that one of the key things the Bank
  is looking at is services inflation,” said James Smith,
  economist at ING Financial Markets.
  “If services inflation is a little bit stickier, I think
  that tilts the balance a little bit further towards August over
  June, but it’s a pretty close call to be honest.”

On Wednesday a couple of BoE officials seems to pour cold water on the June cut idea, sending GBP higher:

• BOE’s Pill: The timing for a rate cut is still some way off
• BOE’s Pill says seeing signs of a downward shift in inflation persistency
• BOE’s Haskel: High inflation to remain unless labour market weakens

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