• The Bank of England will start cutting interest rates in the third quarter, a Reuters poll of economists showed, with a slim majority expecting the first reduction in August.
  • That is later than forecast in a January poll, when a small majority of economists saw the rate cut cycle starting next quarter, although the latest result also was a very close call.
  • Inflation remained steady at 4.0% in January, unchanged from December but much lower than the 41-year high of 11.1% in October 2022.
  • Median forecasts in the Feb. 15-20 poll of 66 economists showed Bank Rate will stay at 5.25% until a fall to 4.75% in the third quarter, then ending the year at 4.50%.