£ falls on weak inflation news – BoE rate cuts on the radar
The pound slipped roughly 0.4 % after this morning’s inflation figures hit a modest low, hinting that markets feel the Bank of England might be ready to loosen policy sooner than expected.
What the market’s whispering
Experts weigh in on whether a rate cut will pop up next time the BoE meets.
- Prem Raja (Currencies 4 You) — “Sterling dropped because inflation is creeping toward 2 %. We’re assuming the Bank will cut once each quarter, but with a fresh rise on the radar, the next cut isn’t a deal‑breaker just yet.”
- Harry Mills (Oku Markets) — “The 2.8 % CPI for February is spot on predictions. The BoE kept rates steady at 4.5 % this month, preparing for April tax hikes. Inflation’s road to 2 % will be a bumpy one, so expectations remain mild. The pound may feel the squeeze again as Chancellor Rachel Reeves tackles her Spring Statement.”
- Tony Redondo (Cosmos Currency Exchange) — “The 2.8 % figure might tip the balance to the doves, but core inflation is still a battleground. A May cut is on the table if the next data line up, yet the Bank may hold until one more meeting to avoid a misstep. Swaps are pricing in 50‑75 bp cuts by year‑end, putting added pressure on the pound.”
- Rob Mansfield (Rootes Wealth Management) — “The pound could wobble today as the Chancellor’s Spring Statement unfolds. Markets want rates to ease, but the BoE knows cutting too hard risks a resurge in inflation. The Chancellor’s got a tight spot with sceptical fiscal eyes.”
- Riz Malik (R3 Wealth) — “There’s a strong likelihood of a 25 bp chop in May, but it’s far from guaranteed. The BoE’s MPC has yet to shift enough in favour of doves, although the softer print helps.”
So strap in, folks—the pound’s mid‑market journey might stay fluid as the Bank and the government navigate the twisty inflation lane.
