Short-term the main question that arises is whether the BoE will be proven correct and whether inflation really will have fallen to below 5% in October as it expects according to the latest monetary policy report. The data is due for publication next Wednesday.

Even though the market has been expecting rate cuts for next year for some time now, this has been pure speculation until now. At the start of the week, Chief Economist of the Bank of England Huw Pill sounded dovish. Pill’s comments make rate cuts seem a little more likely.

It is questionable whether BoE Governor Andrew Bailey will manage to dampen these expectations again, as the genie is out of the bottle now.