Bank of England will delay any cut interest rates to June instead of May, according to economists at Goldman Sachs.
At the end of December, the US bank advanced its estimates forward from June to May, having predicted that 25 basis point cuts would continue until it reaches 3% in May 2025.
Another economist, Simon French at Panmure Gordon, said: "Decent argument for June if the April uprating round doesn’t trigger second order effects - and we will have decent visibility by mid-June. But would be odd to inflect policy at non-presser, non-MPR month. I still favour August."
It follows comments from one of the BoE's biggest former hawks Andy Haldane calling for rate cuts soon or risk the UK falling deeper into recession.
Haldane said: “It’s one thing to miss inflation on the way up, it’s another to then have crushed the economy on the way down. That double blow to credibility is one I’d be looking to avoid.”