Bank of England Could Cut Rates Further in 2023 As Inflation Cools and Economy Holds Steady

• Further interest rate cuts likely in 2023 as inflation approaches Bank of England's target • Financial markets and Bailey expect more than one rate cut this year • Tighter policy has successfully averted wage-price spiral risk • Global shocks easing; no evidence currently of persistently high inflation
• UK in unique situation of falling inflation despite near full employment