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MNI BRIEF: BOE To Cut Only Once More In 2025 -NIESR

NIESR's projections on BOE and fiscal policy and sticky inflation

MNI (LONDON) - The Bank of England will make only one further 25bp cut in 2025 and another in 2026, with Bank Rate troughing at 4.0%, according to the National Institute of Economic and Social Research.

In an updated quarterly forecast round, NIESR projected that inflation would hit 3.2% in January and peak at 2.8% this quarter and average 2.4% for the year before dropping back to the 2% target with the BOE only having room for two more rate cuts.

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MNI (LONDON) - The Bank of England will make only one further 25bp cut in 2025 and another in 2026, with Bank Rate troughing at 4.0%, according to the National Institute of Economic and Social Research.

In an updated quarterly forecast round, NIESR projected that inflation would hit 3.2% in January and peak at 2.8% this quarter and average 2.4% for the year before dropping back to the 2% target with the BOE only having room for two more rate cuts.

Keep reading...Show less