Jin10 data June 19th, Bluebay Chief Investment Officer Mark Dowding stated that the Bank of England hopes to lower the Intrerest Rate and they want to believe that inflation has been controlled. This is what some of their models indicate should happen. But intuitively, I have always believed that the inflation level in the UK is still too high, and lowering rates would be a mistake. From this perspective, if UK government bond yields decline due to the market believing that the Bank of England is becoming more dovish, I would actually tend to take a Reverse position, anticipating that yields will rise. In terms of my observations on inflation, real-life experiences of inflation suggest that current inflation is still around 4%. Prices of all goods seem to be constantly rising, and inflation expectations are likely to remain around this level. Against this backdrop, I believe the Bank of England has little room to lower rates.
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