2025-12-18 16:05:00
- I expect UK CPI to fall to near 2% target in April or May 2026
- Policy stance is still restrictive but I expected pace of cuts to ease at some point
This is perhaps less hawkish than I would have expected from the BOE statement earlier. He is still talking about rate cuts and inflation falling to 2% would certainly give him some latitude to tee-up cuts next year.
Cable has retreated to just below 1.3400 from a high of 1.3446 but it has been caught up in a fair bit of USD volatility today as well. There has been no reaction to the latest comments.
This article was written by Adam Button at investinglive.com.
