UBS flags March BoE cut after dovish vote and sharper inflation downgrade in World Economy News 09/02/2026 According to UBS, the Bank of England’s decision to hold rates at 3.75% signals a clear dovish shift, with the 5–4 MPC split—four members backing an immediate 25 basis point cut—more accommodative than markets expected. UBS said this supports its view that inflation pressures are easing, noting the BoE now expects inflation to reach 2.1% by Q2 2026, a sharp downward revision from November’s 2.9% forecast. While five policymakers opted to wait for more evidence on wage and price dynamics, UBS highlights that even traditionally hawkish members such as Catherine Mann have softened their stance, pointing to signs that “wage and price moderation is in train.” Key points from UBS’s analysis of the Bank of England’s position: March Rate Cut: UBS maintains its forecast for a 25 basis point cut in March, bringing the rate to 3.5%. This prediction is strengthened by the close vote split and the BoE’s revised inflation projections. The January inflation print, expected to show a significant decline to around 3% year-over-year, will likely provide sufficient justification for the cut. Terminal Rate: UBS projects one additional cut in June to a terminal rate of 3.25%, a level Governor Bailey described as “reasonable” during the press conference. However, analysts see risks skewed toward a lower terminal rate. Economic Projections: The BoE has significantly revised its inflation outlook, now expecting inflation to return to target nearly a year earlier than previously forecast. Growth projections for 2026 and 2027 were reduced to 0.9% and 1.5% respectively, while the 2028 forecast was slightly increased to 1.9%. Market Strategy: UBS recommends receiving 5-year Sonia with a 3% target (currently at 3.72%), suggesting that neutral rates are likely below 3% and that stimulative policy should be taken more seriously. UBS economists conclude that with inflation set to drop significantly and amid a weakening labor market, the barriers to deeper rate cuts will likely diminish in the coming months, supporting their outlook for monetary easing. What are the best investment opportunities in 2026? The best investments start with better data. Going with your gut has its place, but when excitement masquerades as intuition, it can lead to costly mistakes—or analysis paralysis. InvestingPro+ combines institutional-grade data with AI-powered insights that you don’t need a finance PhD to understand. It won’t guarantee winners, but it will certainly help you find more of them, more often. So what are the best investments of 2026 so far? Source: Investing.com 2026-02-09 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share