Central Banks
Bank of England’s Quick Pivot Puts June Rate Cut in Focus
- Inflation drop and political calendar point toward sooner move
- Governor says ‘not unreasonable’ for markets to bet on cuts
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The Bank of England has laid the groundwork for a shift to rate cuts after one of the sharpest turnarounds in guidance in recent memory, with data releases, investor bets and the UK’s political calendar pointing to June for the first move.
Across just two months, Britain’s central bank has repositioned itself from a bias for higher borrowing costs to be poised for reductions. Two of the most hawkish rate-setters dropped their calls for hikes on Thursday, moving off a position that had struck many observers as out of step with recent data.