BoA expect no further Bank of England rate hikes, then rate cuts from 2024

Bank of America on Bank of England monetary policy following the +25bp rate hike last week.

ICYM the hike news:

• Forexlive Americas FX news wrap 23 Mar: BOE hikes by 25 basis points to 4.25%

BoA now:

• We expect no further rate hikes
• We see no cuts until 2024
• The minutes of the BoE's policy raise upside risks to our terminal rate call of 4.25%. They left enough optionality to hike again but we stick to our call of no more hikes.

BoA caveat:

• Our forecast is sensitive to the data flow, especially the next inflation reading and any impact on credit conditions from recent banking sector turmoil.