BOE Rate Cuts to Slow Should Energy Prices Stay at Current Levels -- Market Talk

Dow Jones03-03

0913 GMT - Should energy prices stick at current levels, Bank of England rate cuts would slow, Deutsche Bank's Sanjay Raja says in a note. A March rate cut would be in doubt, with concerns that higher energy prices could leave inflation expectations stickier becoming a major consideration for policymakers, he says. The next rate cut to 3.5% would likely come sometime in the second quarter of the year, with a final cut as far out as the fourth quarter. Should energy prices rise as high as $100 a barrel, the next cut could wait until the second half of 2026 while the terminal rate could push higher to 3.5%, he says. However, if the commodity-price spike reverses course, the BOE could stick to Deutsche's baseline expectation of two rate cuts to a terminal rate of 3.25%, Raja says.(edward.frankl@wsj.com)

 

(END) Dow Jones Newswires

March 03, 2026 04:13 ET (09:13 GMT)

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