Deutsche Bank: The Bank of England may cut interest rates to 3.5% by the end of the year

On March 14, Deutsche Bank Research predicted that the Bank of England will cut interest rates four more times in 2025, reducing interest rates to 3.50%. However, the bank's economist Sanjay Raja said in a note that the Bank of England's next decision on March 20 should leave the interest rate unchanged at 4.50%. "In our view, a 'gradual and cautious' approach is not conducive to successive rate cuts – especially if headline CPI rises," Raja said. LSEG data shows that the market is pricing in a 92% chance that the Bank of England will keep interest rates unchanged in March, and that the Bank of England will cut rates two more times in 2025.