Citigroup brings forth BoE rate cut expectation to June from August

(Reuters) – Citigroup shifted its expectation for Bank of England’s (BoE) first rate cut to June, compared to a prior expectation of cuts beginning in August.

The Wall Street brokerage maintained the quantum of cuts at 125 basis points (bps) for the whole year.

“A combination of stubbornly weak activity, a further softening in labour market indicators, alongside in-line wage and services inflation numbers will now more likely than not push the MPC to begin cutting by the end of Q2,” Citi economists said in a note dated March 12.

(Reporting by Gokul Pisharody in Bengaluru; Editing by Sonia Cheema)