BOE’s Bleak UK Outlook Lifts Bets on Sharp Rate Cuts in 2024
- Governor pushes back against market bets for more reductions
- BOE in step with Fed and ECB in maintaining pause on rates
The Bank of England in London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Bank of England Governor Andrew Bailey may insist that it is “much too early to be thinking about rate cuts,” but the financial markets have other ideas.
After the UK central bank pressed pause on the quickest tightening in three decades, traders now expect as many as three quarter-point cuts from the BOE by end of 2024, which would reduce the benchmark rate to 4.5%.