According to Jinshi, Danske Bank pointed out that the Bank of England is expected to cut interest rates by 25 basis points for the first time in June, with 25 basis point cuts in the next few quarters, for a total of 75 basis points in 2024. The market expects a 60 basis point cut in the rest of the year, and the first 25 basis point cut in August has been fully priced in. Two full monthly data will be available before the next meeting on June 20, covering economic activity, inflation and the labor market. The data is expected to show further signs of weakness, with inflation and wage growth stabilizing, which will give the Bank of England enough confidence to choose to cut interest rates at the June meeting. However, if there are surprises on all fronts, the rate cut cycle may be delayed.
