1526 GMT - Recent tariff news could open the door for the Bank of England to deliver a larger 50 basis-point rate cut in May, Deutsche Bank's Sanjay Raja says in a note. This comes after former BOE rate setter Charlie Bean advocated for a half-point cut, citing elevated uncertainty delaying buying and investments decisions. The BOE would need to see a sharp drop in survey activity indicators, unwarranted tightening in financial conditions, and more evidence of labor markets cooling in order to surprise markets with a large cut, Raja says. The BOE will also need to weigh up the prospect of trade redirection from Asia into Europe and any ensuing disinflationary shock. "The chances of faster rate cuts are growing--albeit from a low base," Raja says. (edward.frankl@wsj.com)
(END) Dow Jones Newswires
April 08, 2025 11:26 ET (15:26 GMT)
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