BoE: Holds but signals further easing – Danske Bank

Danske Bank analysts Kirstine Kundby-Nielsen and Jens Peter Sørensen note the growing weakness in the British economy, with higher unemployment, slower wage growth and subdued overall activity prompting the Bank of England to lean more dovish. The BoE kept its policy rate at 3.75% but signalled more cuts ahead. Analysts expect two additional rate reductions in April and November, and see risk that easing could come earlier than currently anticipated.

Weak UK data underpin BoE dovish stance

"Conversely, the British economy is showing more pronounced signs of weakness, with rising unemployment, slower wage growth, and weak overall growth, prompting the Bank of England to signal that further rate cuts are likely."

TMGM tahlili: Moliyaviy bozor yangiliklari, iqtisodiy kalendar va bozor tahlillari

"The Bank of England kept rates unchanged at 3.75% at its latest meeting, but the decision was once again marked by significant disagreement."

"The tone, however, leaned towards the dovish side, and the central bank signalled further rate cuts."

"We expect two additional rate cuts (in April and November), which is roughly in line with market expectations."

"However, we see the risk skewed towards the rate cuts being delivered sooner than anticipated."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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