Good morning. Bank of England Governor Andrew Bailey opens the door to UK rate cuts, with today’s inflation data likely to add to the case, while Jerome Powell is in no rush for the Fed to ease. Luxury goods stocks face a dour day. Here’s what people are talking about.
The Bank of England may move to cut interest rates before the Federal Reserve. That’s a hint from Governor Bailey to an ongoing question about when central banks globally will kick off a cycle of monetary easing. Bailey said there is more “demand-led inflation pressure” in the US than seen in the UK. He sees “strong evidence” of price pressures retreating in his country, which underscores economists’ forecasts of March CPI falling to 3.1% from 3.4%. Chancellor Jeremy Hunt said that the prospect of policy easing later this year would lift the mood of voters. All that means the wide gulf between UK and US yields may only increase.
