Strategists predict Bank of England may cut interest rates first

According to Golden Ten, strategists and fund managers at Jupiter Asset Management, Pictet Asset Management and Candriam said that the market still underestimates the possibility of the Bank of England cutting interest rates faster and more deeply than other major central banks. Although the odds of a rate cut by the Bank of England at its May meeting are around one in five, markets are still pricing in the UK's actions lagging those of the European Central Bank. Luca Paolini, chief strategist at Pictet AM, said: "The Bank of England may be the first central bank to cut interest rates." He expects British government bonds to outperform other government bonds. "Given that we are still very much in recession, the UK may need rate cuts more than elsewhere, even more than Europe."