How U.K. Flash PMI Could Stop a BOE Interest-Rate Cut

(Bloomberg) --

The start of the year has seen a dovish shift from the Bank of England, opening the door to an interest rate cut this month. The flash composite PMI reading on Friday will be make or break, with research by Bloomberg Economics -- mapping the PMI to voting behavior on the Monetary Policy Committee -- suggesting that a figure of 51.5 or above has historically been enough to stave off a rate cut. If the survey rebounds, as BE expects, then policy makers will likely keep interest rates on hold.

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