ING Research discusses its expectations for the BoE policy trajectory.
"The BoE will want to see more evidence that the trends in pricing behaviour are persisting, and in reality, it’s unlikely to have enough concrete information by the time of the March meeting. Policymakers are clear that the burden of proof is on inflation showing signs of easing, not the other way around. That suggests we should still expect a 25bp rate hike next month, though we think the Bank will become more relaxed about inflation by the time of the May meeting," ING notes.
"However assuming the downtrend in core services inflation is a gradual one, we suspect a rate cut will be less forthcoming in the UK than in the US, where we think policy easing will arrive by year-end. We don’t expect the first BoE rate cut for at least a year," ING adds.