The British Chambers of Commerce (BCC) Quarterly Economic Forecast makes a surprising argument. Researchers there are looking for a series of mini rate cuts from the Bank of England.
In the note, the BCC says that after the first interest rate cut in over four years in August, the Bank of England is predicted to cut again in Q4.
So far, unsurprising.
But, the note goes on to say that the Bank of England’s base rate is projected to reach only 4.9% by the close of 2024. And that the Bank is expected to take a more cautious path, implementing several 0.1 percentage point cuts, lowering the rate to 4.3% by the end of 2025, and further decreasing to 3.8% by the end of 2026.