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Deutsche Bank Still Sees Bank of England Cutting Rates Twice This Year

BY MT Newswires | ECONOMIC | 02/19/26 07:41 AM EST

07:41 AM EST, 02/19/2026 (MT Newswires) -- A March rate cut at the Bank of England isn't a "slam dunk," said Deutsche Bank.

However, given the deteriorating British labor market, the bank maintains this as its base case.

Stickier price momentum will certainly add some consternation to those on the fence within the BoE's Monetary Policy Committee, stated Deutsche Bank.

And strong survey data on prices, the bank thinks, could complicate the labor market/inflation trade-off.

Deutsche Bank sticks to its long-standing call for two more rate cuts this year -- in March and June -- and it maintains the view that risks are skewed to slower but deeper rate cuts.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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