Bank of America no longer expects BoE rate cuts in 2025 ...Middle East

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Bank of America no longer expects BoE rate cuts in 2025

Another investment bank revising its BoE rate cuts expectations alongside the other ones we got earlier. The bank expects the next rate cuts in February and April 2026.

In my opinion, the BoE has a very big inflation problem. Inflation expectations remain elevated and even rising, that could feed into wage setting and therefore keep inflation higher for longer (and wage growth has indeed been high for years).

    The central bank should stop thinking about rate cuts altogether and open the door for rate hikes if needed. This way they would guide expectations lower without the need to actually deliver any rate hike. It might mean a slowdown in the economy or even a recession sure, but that's the price you have to pay when you screw it up so badly.

    This article was written by Giuseppe Dellamotta at investinglive.com.

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