Markets are pricing in 30 bps of easing in the UK by August 2024, which looks rather modest compared to the 50 bps+ priced in for the US and the Eurozone. We suspect there is room for further dovish repricing down the road in BoE expectations.

Today, all eyes will be on a speech by BoE Governor Andrew Bailey. It is not clear whether he will discuss monetary policy, but if he does, he may be inclined to soften the stance on rate cuts that was suggested by Bank of England Chief Economist  Huw Pill on Tuesday.