Bank of America: Decreased inflation expectations have increased the possibility of a rate cut by the Bank of England in March.

According to a survey conducted by YouGov and Citigroup, the British public's expectations for inflation decreased in February, leading economists at Bank of America to believe that the Bank of England may lower interest rates in March. They stated, "Our base case remains that a soft labor market, declining inflation, and slowing wage growth should lead to a rate cut by the Bank of England in March." Data from LSEG shows that market expectations for a rate cut by the Bank of England in March are at 83%.