Deutsche Bank are forecasting a close call at the Bank of England meeting this week:
5-4 vote in favour of a 25bp cutexpect the Monetary Policy Committee to deliver its first rate cut of the cyclethis will lower the Bank Rate to 5%think the case for a rate cut rests on a shifting reaction function within the MPC, including stronger reliance on its inflation projections, forward-looking indicators of wage and services prices, as well as firming real rates
This article was written by Eamonn Sheridan at www.forexlive.com.
