UK inflation doesn’t look that different to the eurozone after all
Financial markets have significantly ramped up bets for 2024 rate cuts over recent weeks. But what’s striking is that investors still expect the Bank of England to start rate cuts later and cut less aggressively overall than the European Central Bank or Federal Reserve. Admittedly, this divergence has narrowed after some encouraging wage figures and poor GDP numbers this week. Even so, investors are pricing a little over three UK cuts for next year starting in June, compared to five at the ECB starting in May.
Read More : Understanding the Context: Why the Bank of England Won’t Deviate with Rate Cuts in 2024