- Markets now expect the Bank of England will cut rates earlier and by more than the Federal Reserve this year
- UK services inflation remains much higher than in the US
- Higher inflation expectations have translated to higher pay growth, by metrics now between 6-7 per cent in UK
- Rate cuts in the UK should still be a way off as well
For context, markets are pricing around a 60% chance of a rate cut by June for the Bank of England.
