Bank of England to Cut Rates to 3.50% in March, Uncertainty Looms

The Bank of England is expected to cut interest rates in March, with a majority of economists (over 60%) predicting a 25 basis point reduction to 3.50% on March 19. This follows a narrow 5-4 vote to hold rates at 3.75% in February, with Governor Andrew Bailey voting to keep rates unchanged. The decision is not without uncertainty, as economists are divided on the timing of further cuts, with some expecting a second reduction in Q2 and others in the second half of the year. Inflation remains above the 2% target, with January's consumer price inflation expected to have slowed to 3.0% from 3.4%.