UBS economist Paul Donovan highlights uncertainty around the Bank of England meeting, contrasting it with a more predictable ECB. He explains that quirks in data collection distorted December inflation, but underlying UK inflation is expected to trend lower. This should permit interest rate cuts later in 2026, although UBS does not expect the Bank of England to ease policy immediately.
BoE path to eventual rate cuts
"The Bank of England offers some uncertainty."
"Weirdness in data collection timing distorted December inflation numbers, but the trend in inflation should be down."
"That will allow rate cuts this year, but not just yet."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content available on Mitrade Insights is provided for informational and marketing purposes only. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.