According to Jinshi Data, Iain Stealey, chief investment officer of fixed income international at Morgan Asset Management, said that the Bank of England may still relax its policy at its August meeting.
Stealey noted that while yesterday’s inflation data showed some stickiness, today’s wage data suggests a downward trend. He believes the Bank of England will seek to engage in a preemptive rate cut cycle to take pressure off monetary policy.
Stealey added that interest rates would not return to zero or similar levels at the moment, but the outlook for UK gilts was positive.
