The BoE may bring the interest rate cut forward from June to May.

Foreks reports that the recent decline in inflation in the UK could be positively received by the Bank of England (BOE). According to Joaquin Thul from EFG Asset Management, markets are currently anticipating an interest rate cut at the BOE's Monetary Policy Committee (MPC) meeting in June. However, Thul suggests that the inflation data could accelerate this decision, potentially leading to a rate cut as early as May 8.

Currently, money markets are pricing in a 54% probability of an interest rate cut in May and an 85% chance in June. Meanwhile, Deutsche Bank economist Sanjay Raja expects inflation to rise again in the coming months. Although February data showed a slight slowdown in price increases, Raja posits that potential hikes in food and energy prices could push inflation upward once more. He noted that the BOE may continue to cut rates, but this process will be gradual.