Morning Bid: Bank of England to test cut assumptions
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The Bank of England is not expected to move interest rates today. Markets price an almost 50-50 chance of a cut in June. Academic Swati Dhingra already voted for a cut in March and some figure on Deputy Governor Dave Ramsden joining her this month. A cut is fully priced for August and last week sterling short positions rose to their largest since January 2023. The European Central Bank has all but promised a cut on June 6. Sweden and Switzerland have already cut rates. In Asia, Chinese trade data showed growth in exports and imports. Bank of Japan minutes showed a hawkish shift in April. Governor Kazuo Ueda told parliament on Thursday that the central bank was watching the sliding yen closely. U.S. President Joe Biden vowed to withhold weapons from Israel if its forces make a major invasion of Rafah in southern Gaza. Israel continued tank and aerial strikes on southern Gaza. Key developments that could influence markets on Thursday include the Bank of England policy meeting.

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https://www.investing.com/news/economy/morning-bid-bank-of-england-to-test-cut-assumptions-3430498