- It’s ok to continue with a gradual pace of rate cuts.
- Gradual cuts implies 100 bps of easing over the next year.
- This is closely aligned with market curve currently.
- That is not necessarily what will unfold, depending on economic conditions.
- There are conditions where the BoE can go faster.
- Labour market data is key for my view on rate cuts.
- Disinflation is unfolding as we would expect.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
