A rate cut is now a fact, albeit higher than expected: It is now confirmed; that the CBE has resumed its easing cycle in line with our expectations. We had expected that the CBE will likely cut interest rates in 2019 by a cumulative 300bps, of which 100bps took place in February 2019 and another 150bps last Thursday. This means we could potentially see another 50-100bps move by end of year, depending on inflation readings and expectations as clearly spelled out in the MPC statement.
For more details, please read the full report below.