N@N

Bank of England to cut interest rates only twice more, NIESR predicts

The National Institute of Economic and Social Research (NIESR) has forecasted that the Bank of England will reduce interest rates only twice more in the current cycle, predicting cuts in August and November, bringing the base rate down to 4.75% by the end of 2024. This cautious approach is due to persistent high inflation, particularly in services, which remains above the Bank's 2% target. Despite expectations of inflation dropping to around 2% in the second quarter, NIESR warns that inflation could rebound to 3% by year-end due to rising energy prices. The think tank also anticipates a slight economic growth of 0.4% for the year, with a risk of recession if rates are not adjusted appropriately. Additionally, NIESR suggests that the Bank should consider the impact of its policies on the housing market and overall economic stability, advocating for a more dovish stance to prevent economic downturn.

Read the Full MSN Article at:
[ https://www.msn.com/en-gb/money/economy/bank-of-england-to-cut-interest-rates-only-twice-more-niesr-predicts/ar-AA1yR8q5 ]