DAVY VIEW

Following dovish comments from several Monetary Policy Committee (MPC) members and yesterday’s poor UK GDP data, markets are now pricing in a Bank of England rate cut in January with a 50% probability. GDP contracted by 0.3% in November, pushing annual growth to an eight-year low. However, the Deloitte CFO survey showed a marked rebound, with 38% planning to raise capital expenditure over the next 12 months – the highest proportion since 2015.