Bank of England Governor Bailey is scheduled to speak in Sintra this week and is
expected to take a relatively relaxed tone. A global oil-price plunge has eased
inflation pressures; institutional research projects inflation will peak near 3%
and fall to about 2.3% next year, well below the BoE’s prior outlook, which
could allow rates to be cut from 3.75% to 3.5% by June 2027. Markets will watch
whether Bailey today effectively endorses that view and explicitly rules out
further hikes.
