Capital Economics: The Bank of England is more likely to delay rather than cancel interest rate cuts

Golden Ten Data reported on March 12 that Paul Dales from Capital Economics stated in a report that the Bank of England is more likely to delay rate cuts rather than cancel them altogether. The Middle East war has caused energy prices to soar and triggered concerns about high inflation, prompting investors to lower their expectations for rate cuts. LSEG data shows that the UK money market currently only prices in a 5% probability of a rate cut by the Bank of England at the March 19 policy meeting, compared to 83% before the outbreak of the Middle East war. Capital Economics expects the Bank of England to keep interest rates unchanged at 3.75% in the rate decisions in March, April, and June.