David McNamara: UK and Eurozone similar in many respects, except on rates

The BoE expects inflation to fall back to its 2% target in the medium term

The takeaway is the BoE will tread cautiously from here amid the current policy fog.

Last week’s knife-edge Bank of England (BoE) rate cut came amid ongoing uncertainty on the global and domestic front for policymakers. 

The caution of the BoE is notable given the current weakness of the UK economy. Comparing high-level macro data to the Eurozone suggests both economies are growing similarly at historically weak rates of about 1% per annum.