BOE expected to raise interest rates by 25 basis points in June

In the Asian session on Thursday (May 25), GBP/USD fell back from its highs, temporarily reporting at 1.2359, a drop of 0.03%. Berenberg updated his rate forecast for the Bank of England following the release of UK inflation data for April. Berenberg now expects the Bank of England to raise rates by 25 basis points in June.

Bank of England dynamics:

In addition, Berenberg expects the Bank of England to cut interest rates only once in the fourth quarter, compared with the previous expectation of two interest rate cuts. Change. Berenberg expects the Bank of England to cut interest rates six times next year, not four, each by 25 basis points.