New Star's Ward predicts 50bp rate cuts

New Star economist Simon Ward expects the MPC to cut interest rates by 50 bp by the third quarter of ...

New Star economist Simon Ward expects the MPC to cut interest rates by 50 bp by the third quarter of next year. Describing the MPC’s November inflation report as ‘remarkably dovish’, Ward said the group’s has been influenced by the forecast that inflation will remain slightly above target in 2008. “Time will tell whether recent financial events warrant the MPC’s dramatic forecast revisions; the economy could well prove more resilient than assumed,” he said.