The International Monetary Fund (IMF) revealed on Tuesday its staff recommends about 50-75 bps cuts in the Bank of England's benchmark rate in 2024.
The IMF's staff warned that keeping the Bank Rate constant could stall or even reverse the recovery and lead to an extended undershooting of the inflation target.
In the staff's view, the UK's economy is approaching a soft landing. The country's real GDP is now forecast to grow by 0.7% in 2024 (up from 0.5% in the April forecast) and by 1.5% in 2025 (unchanged) as disinflation buoys real incomes and financial conditions ease.
Regarding price pressures in Britain, the IMF's staff noted that CPI inflation has fallen faster than was envisaged last year and is projected to return durably to the BoE’s 2% target by early 2025.