Overview

• All 60 economists in a Reuters poll anticipate the BoE to hold its base rate at 4.25% in June.
• Official figures show the UK economy shrank by 0.3% in April, marking its sharpest month-on-month contraction since 2023.
• Financial markets are pricing in two more quarter-point cuts this year, targeting a rate around 3.75% by year-end.
• Consumer price inflation was revised to 3.4% in April, and the BoE forecasts it will peak at 3.5% in the third quarter.
• Wage growth cooled to just above 5% in April while payroll numbers fell, easing domestic cost pressures.