Explore eFXplus Derived Data That Drive Results
A Data Partner of:
Mar 22 - 12:55 AM

MUFG: We Maintain our Call for 100bps of Cuts this Year Following Today's BoE

By eFXdata  —  Mar 21 - 04:30 PM


Following its recent meeting, the Bank of England (BoE) has maintained the Bank Rate at 5.25%, marking the fifth consecutive meeting without a policy rate adjustment. Despite indications that efforts to curb inflation are progressing, the BoE suggests that the appropriate conditions for easing monetary policy have yet to be met. A shift in voting patterns among members signals a growing openness towards rate cuts, potentially as early as June or August.

Key Points:

  • Unchanged Policy Rate: The BoE has decided to keep the policy rate steady at 5.25% during its latest meeting.
  • Inflation Reduction Efforts: The central bank acknowledges ongoing progress in controlling inflation, though not yet sufficient to warrant a shift towards easing monetary policy.
  • Voting Shifts: Changes in voting by members Jonathan Haskel and Catherine Mann, from advocating rate hikes to supporting a hold, hint at a growing consensus for potential rate cuts in the near future.
  • Projected Rate Cuts: MUFG maintains its forecast of 100 basis points in rate cuts for the year, with the timing of the initial cut—whether in June or August—still under debate.


The Bank of England's recent meeting outcomes underscore a cautious approach towards adjusting monetary policy amid improving inflation metrics. The notable shift in voting behavior among the Monetary Policy Committee members reflects a gradual shift towards the possibility of rate cuts. Although the exact timing remains uncertain, MUFG anticipates a total of 100 basis points in rate reductions throughout the year, signaling a significant shift in the UK's monetary policy trajectory amidst ongoing economic assessments.

MUFG Research/Market Commentary


  • eFXplus
  • End-user license agreement (EULA)


  • About
  • Contact Us


  • Terms of Service
  • Privacy Policy
  • Disclaimer
© 2024 eFXdata · All Rights Reserved