The firm expects the policy guidance by the BOE to be maintained, so as to mention that the more restrictive policy will be maintained “for an extended period”. Adding that recent data “have not provided firm evidence on the persistence and strength of the medium-term disinflationary process”.
Barclays sees the bank rate vote coming in at 6-3 today, with Greene, Haskel, and Mann to vote for a 25 bps rate hike. As for the overall rates outlook, the firm sees the BOE only starting to cut rates in August next year with a push to 3.25% by Q2 2025. They argue that it is unlikely for the BOE to pivot in the first half of next year and “almost certainly” not before May.