Anna 
As the Bank of England (BoE) prepares to announce its Interest Rate Decision on Thursday, March 21 at 12:00 GMT, economists and researchers from seven major banks have outlined their expectations for the upcoming monetary policy meeting.
Widespread anticipation suggests that the BoE will maintain interest rates at the current level of 5.25%, marking the fifth consecutive meeting without a change. However, investors will closely scrutinize the meeting for signals regarding the potential timing of future rate cuts.
Rabobank: Anticipating the BoE to hold the rate at 5.25%, Rabobank predicts another three-way split in the vote. While acknowledging the likelihood of a future rate cut, Rabobank does not expect the MPC to provide a clear indication of the timing for such action. The bank projects the first rate cut to occur in September, preceding the achievement of sustained 2% inflation.
TDS: Expecting the MPC to maintain key guidance and keep the Bank Rate unchanged at 5.25%, TDS suggests a wait-and-see approach with little change in underlying inflation language.
Danske Bank: Danske Bank forecasts the BoE to leave the Bank Rate unchanged at 5.25% and anticipates a repeat of the previous data-dependent communication strategy. The bank suggests a muted reaction in EUR/GBP with potential risks skewed to the upside.
ING: ING anticipates the BoE to reaffirm its forward guidance on the need for restrictive rates for an extended period, avoiding signals of an imminent rate cut. The bank speculates on whether hawks from the previous meeting will change their stance and expects the first rate cut in August, following second-quarter inflation data.
As the financial community awaits the BoE’s decision, market participants will closely analyze any indications of future monetary policy adjustments amidst evolving economic conditions.
