Merryn Talks Money Markets Weekly: Tech and Crypto Slide, BOE Surprise, Turbulence for Gilts and Pound
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Feb 6, 2026 Marcus Ashworth, Bloomberg Opinion columnist and markets commentator with bond and European equities expertise. He unpacks the Bank of England's surprise hold and shifting rate expectations. They cover AI-triggered software stock sell-offs and a rotation back to value names. Discussion also touches on rising unemployment, credit spread worries, and longer-term re-rating across sectors.
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BOE Turned Dovish, Cuts Likely Soon
- The Bank of England has shifted dovish, forecasting lower growth and inflation and signaling imminent rate cuts.
- Marcus Ashworth and John Stepek expect cuts possibly in March or April and several reductions later in the year.
Inflation Outlook Dropped Sharply
- The Bank revised forward inflation down by about 100 basis points since November, half due to the budget.
- That reduction plus weak growth makes current 3.75% rates appear too high to Marcus Ashworth.
Rising Unemployment Pressures Policy
- Unemployment above 5% is a key concern pushing the BOE toward cuts as it dampens spending.
- Marcus Ashworth highlights that weaker hiring, not mass redundancies, is reducing private-sector activity.