1037 GMT - Strong inflation and wage growth data this week suggests the Bank of England will cut interest rates more steadily than previously expected this year, UBS economists Anna Titareva and Reinhard Cluse say in a note. Inflation picked up to 3.0% in January, from 2.5% in December, while weekly earnings growth climbed to 5.9% in the three months to December. "We think that the bank will maintain its gradual approach to easing," the economists say. Despite signs of improvement in underlying services inflation, given that energy costs will prop up inflation, the rate won't approach the 2% target until 2026, they say. The economists expect three quarter-point rate cuts this year, bringing the key rate to 3.75 by the end of 2025. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
February 20, 2025 05:37 ET (10:37 GMT)
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