Saxo Bank: BoE meeting vote likely to reflect a more dovish stance

The Bank of England is expected to keep the Bank of England rate unchanged at 5.25% and observe future policy guidance data. The MPC's vote distribution may suggest that monetary policy may shift to a more dovish stance, with the hawkish bias expected to disappear at the May meeting. Markets are pricing in a total of 63 basis points of rate cuts by the Bank of England by the end of the year, possibly starting in August, compared to a 38% chance of a rate cut in June. Until the downward trend in inflation is confirmed, the 10-year gilt yield is likely to remain range-bound.