The Bank of England has postponed its interest rate decision to 12:02 PM due to the VE Day silence. It is anticipated that the Bank will cut rates by 0.25% this month, followed by another possible cut in June. However, they remain wary of accelerating inflation, causing the Monetary Policy Committee to adopt a cautious stance on monetary policy. Experts like Rob Wood suggest that while precautionary cuts may occur, the MPC will likely maintain a gradual easing approach to mitigate inflation.
The MPC can get away with a couple of precautionary rate cuts back-to-back in May and June given the darker growth outlook.
accelerating inflation will keep MPC guidance cautious, prompting the need for a careful approach despite the potential for rate cuts.
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