Yesterday we did see a modest recovery for GBP to the EUR after Bank of England’s interest rate meeting. The banks spokesmen stated that ‘‘there was no presumption that monetary policy was on a pre-set path over the next few meetings’’.
This has lowered forecasts for a rate cut in May. The forward guidance now for 2025, is that Bank of England is expected to bring the interest rate down to a base level of 4%. This would require two more cuts of 25 basis points, which might suggest happening later in the year.
Ahead of UK’s spring budget, we did see public net borrowing being released this morning.
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