The FTSE 100 opens flat on the day as the market is expecting no change in rates for this meeting. Expectations for an interest rate cut have been improving and the FTSE has climbed over the past 5 trading days.

Two of the biggest movers today come from the airline industry, with Int. Consolidated Airlines (ICAGY) up 3.72%, followed by easyJet (EJTTF) up 2.86%, while Beazley (BEZ) is up 3.04%.

The market is expecting a rate cut before the end of 2024. Some analysts are forecasting the BoE makes a total of 3 rate cuts for 2024 starting in July. The expected change in monetary policy would bring the main interest rate to 4.25% from the current 5.25%.

The board of the BoE voted in favor of no change at the previous meeting by 8 votes to 1. The single board member gives a clue as to how the sentiment within the BoE is shifting. Inflation has been on the decline over the past months since it peaked at 8.7% in May 2023.

The latest inflation figure for March reached 3.2% after successive declines from its peak in 2023. The market is gaining confidence for an imminent rate cut as GDP Growth has also been low or negative for the past several months.