Bank of England Could Cut Rates Faster Than Expected As Inflation Forecasts Drop
• Bank of England may cut interest rates sooner than expected due to lower inflation forecasts for 2024 by Oxford Economics, Investec, and Deutsche Bank • Inflation now expected to fall below 2% by April, much faster drop than previously predicted • Financial markets betting on first rate cut in April and 5 more cuts by end of year to bring rates below 4% • Mortgage rates have fallen in response, welcomed by Bank of England Governor Andrew Bailey • Risks remain, including high wages and consumer spending fueling inflation again if tax cuts implemented