How likely is BoE to cut rates to 0.25%?

In its latest quarterly inflation report, released today, the Bank of England has muddied the waters somewhat on its plans for further stimulus, leaving pundits wondering if a rate cut is on the cards.

The report saw a downward revision of the UK’s growth forecast this year to zero, from a much more optimistic 2% projection a year ago. This will no doubt add fuel to fears the UK is facing a prolonged triple-dip recession, and begs the increasingly urgent question ‘what is the central bank going to do to prevent this?’ Schroders’ Azad Zangana is among those assessing the likelihood of a further cut to the base rate as the next weapon the BoE will pull from its armoury. He has come to the conclusion that, on balance, a boost to the Bank’s asset purchase programme is more likely. “Coul...