European Central Bank and Bank of England rate cuts anticipated
Investors anticipate the European Central Bank and Bank of England to cut interest rates sooner due to near-stagnation in the eurozone and the UK. Market expectations have shifted, with the first rate cuts now predicted for June 2024. Gloomy economic data, including lower growth forecasts and rising unemployment, support the likelihood of rate cuts. UK inflation slowing to 4.6% in October further strengthens the case for lower rates.