COMMENT-Pound wants to know if BoE will cut rates in May — TradingView News

April 10 (Reuters) – Sterling will be on alert for guidance about the likelihood of a May rate cut from the Bank of England when governor Andrew Bailey speaks the day before, and then hours after, UK inflation data next week.

Bailey will address the IMF via an online event on Tuesday, before speaking at an event at the Institute of International Finance in Washington DC next Wednesday (April 17).

UK March inflation data is due next Wednesday (at 0600 GMT), with a further decline in CPI from February’s 3.4% YY – the lowest print since September 2021 – expected.

The pound could weaken if Bailey hints he might vote for a rate cut as early as May 9, as the received wisdom is that the other four “internal” BoE members of the Monetary Policy Committee would follow suit if he does (the last time a BoE governor was outvoted on rates was in June 2007).

All five “internals” voted for unchanged rates at the last four MPC meetings (in March, February, December and November).

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