The UK’s Bank of England has voted to keep UK interest rates on hold at 5.25% in May. The move came as expected to the market which saw no probability of a cut in May. Whilst we expect to see inflation continuing to trend down in the coming months there remains strength in the UK economy which we feel would delay any rate cuts coming to the UK until the later months of the summer such as August or September. A deterioration in UK economic growth would bring these cuts forward however so the whole market remains on data watch for the next signals.