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Deutsche Bank Now Sees Bank of England Rate Cuts Later in 2026 Vs. Earlier View

BY MT Newswires | ECONOMIC | 10:48 AM EDT

10:48 AM EDT, 03/11/2026 (MT Newswires) -- Events in the Middle East have added a thick cloud of uncertainty to the Bank of England's policy rate path, says Deutsche Bank.

With energy prices up "sizeably," the inflation path remains highly uncertain, and the United Kingdom's disinflation trajectory is now in doubt, the bank notes.

Fears of rising inflation expectations will pick up, says Deutsche Bank, and after holding onto its baseline call of two rate cuts by summer 2026, the bank is now changing its view.

Deutsche Bank sees the next rate cut coming in June 2026. The bank says risks are balanced around this view, and it sees the final rate cut to neutral (3.25%) coming in Q4 2026.

Risks around Deutsche Bank's new baseline are skewed to slower but fewer rate cuts this year. The bank will reassess its call following the March policy decision.

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

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