“After today’s #BoE hike and commentary we look for them to conclude its hiking cycle with a 25bps increase to 4.25% in March
With an expectation for 100bps in cuts over the course of 2024.”
Given that the BoE expects services inflation to continue rising, the bar will likely be met for further tightening next month as suggested by “if there were to be evidence of more persistent pressures.”
UK economy is set to remain weak amid the cost-of-living crisis and high interest rates, as well as weak consumer and business sentiment, hobbled by strikes and the lingering impact of Brexit.