UniCredit predicts first rate cut by Bank of England in August

UniCredit Bank noted that the Bank of England's MPC decision on June 20 will be a delicate balance, depending on the data released between now and then, including two inflation reports. However, UniCredit still expects the Bank of England to cut interest rates for the first time in August, as it doesn't take much to err on the side of caution. Given that headline inflation fell below 2% this spring, further deterioration in the labor market, and slowing GDP growth, this may lead to the MPC continuing to cut interest rates at a fairly rapid pace after starting to cut rates.