Free Trial

MNI BRIEF: First BOE Cut In May, Inflation Sub 2% Q2 - NIESR

(MNI) London
(MNI) London

The Bank of England, faced with volatile inflation, is likely to take a cautious approach to policy easing with the first cut coming in May and the policy rate falling from its current 5.25% to settle around 3.25% in the medium term, the National Institute of Economic and Social Research assumed in its new quarterly forecast.

NIESR forecast that inflation would drop below the 2% target as early as early as the second quarter before rising back above it by year end, while growth would pick up to 0.9% in 2024, in touching distance of he new, low-trend level of just 1.0%. The institute called for greater clarity from the Bank over its likely easing path and for it to provide alternative scenarios.

Former US Federal Reserve head Ben Bernanke is currently reviewing the uses of, and communication surrounding, the BOE's forecasts. (see MNI POLICY: Bernanke Review Looks At BOE Rate Path, Scenarios)

MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True
MNI London Bureau | +44 203-586-2223 | david.robinson@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.