Mitsubishi UFJ: The expected Intrerest Rate of the Central Bank of the UK may keep the UK government bond yield high.

On March 17, Jin Shi Data reported that Mitsubishi UFJ’s analyst Lee Hardman said in a report that the market expects the Bank of England to make limited interest rate cuts, which will make UK government bond yields higher than similar bonds in developed markets. He said that concerns about inflation may limit the pace of interest rate cuts by the Bank of England. ‘When the inflation rate is expected to temporarily rise to 4.0%, the Bank of England will find it more difficult to continue cutting interest rates in the summer.’ The market expects the Bank of England to keep the key Interest Rate unchanged at 4.50% in March and to cut it by 25 basis points twice in 2025, bringing the Interest Rate down to 4.0%.