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The Bank of England moves another step closer to cutting rates

• BoE leaves policy rate on hold for 6^th consecutive meeting at 5.25%.
• Deputy Governor Ramsden joined MPC member Dhingra in voting for a rate cut as they judged that risks to inflation are now tilted to the downside.
• The updated inflation projections signalled less concern over upside inflation risks incorporating higher market rates since the February MPC meeting.
• The policy update supports our forecast for the BoE to begin cutting rates in June. We expect the GBP to weaken further as the UK rate market moves to price in more BoE rate cuts for this year.