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VIEW: ING Reaffirm View Post-Energy Price Cap

BOE
ING write "UK energy prices will fall by 12% in April and it's likely the regulator will lower the price cap again in July. That's set to take headline inflation below 2% in April and we think it will stay below the Bank of England's target for much - if not all - of 2024. That should help unlock a summer rate cut, if coupled with progress on services inflation and wage growth."
  • "But assuming the Federal Reserve and European Central Bank have cut by June, and that the underlying inflation data does slowly head in the right direction as we approach the summer, we think the Bank will be satisfied enough to begin rate cuts in August."
  • There is no change in their view re: the cutting cycle start date.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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