Inflation Forecasts Not Expected to Deter MPC Rate Cut This Week

The upcoming meeting on Thursday, 8 May, of the Bank of England’s Monetary Policy Committee (MPC) has garnered significant attention and speculation, particularly regarding the potential for a majority vote to cut the standard base interest rate. In a climate where forecasts suggest an increase in the inflation rate over the coming months, the expectation of a rate cut is notable. Analysts predict that inflation could climb to 3.75% in the third quarter, a figure that is considerably higher than the Bank’s target rate of 2.0%.