• But inflation should only return to BOE's target on a sustained basis in early 2025
  • UK economy set for a soft landing, following the shallow recession in H2 2023
  • Sees UK GDP at +0.7% after stronger than expected Q1 data (previous forecast was +0.5%)
  • Sees UK GDP at +1.5% in 2025 (unchanged)

Traders are currently seeing two rate cuts for the BOE, with the first one currently baked in for August. But a move in June might be brought into consideration, subject to the UK CPI report tomorrow.