Rate cut looks nailed on, but MPC guidance key as tariffs dominate

Jeff Brummette, Chief Investment Officer at Oakglen Wealth, comments ahead of the Bank of England Monetary Policy Committee’s interest rate decision on Thursday 08 May:  

“A base rate cut looks nailed on but what will be most significant is the Banks’ future guidance.  

Given the recent NICs rise, hiring slowdown and rising prices, it is possible policymakers will provide more solid guidance for future easing, provided inflation stays under control – but President Trump’s tariffs continue to cause enormous uncertainty and may keep the bank cautious.  

The front end of the yield curve should continue to perform the best, with a steepening of the curve to be expected.”