The Bank of England appears to have performed a pivot following the news that the economy dipped into recession in the fourth quarter of 2023. When apportioning blame for the contraction, the media has decided that the fault lies with the Government. However, it is unclear what could have been done differently given the geopolitical situation. In contrast, the Bank was quick to react to the rise in inflation, hiking rates in December 2022 although the “drip feed” of twenty-five point increments “prolonger the agony”.Now, with inflation falling and likely to fall further given the regulator’s reduction of the price cap from £1,920 to £1,698 in April, Andrew Bailey and his colleagues who constitute the permanent members of the have given the market reason to believe that rates will be cut sooner than was previously expected.The Spring Budget will be delivered by the Chancellor, Jeremy Hunt, in a couple of weeks and there is speculation that he is mulling over more significant cuts in taxes than he was considering. The Public Sector Borrowing Requirement fell to £5.5 Billion from £7.1 Billion a year ago, which may provide Hunt with more “wiggle room”.It is unclear if Hunt and Rishi Sunak have agreed to deviate from “the plan.” Cutting tax would be more in line with Conservative Party values than the increases that have been agreed since the reversal of Liz Truss’s “Budget for growth” that almost wrecked the economy.Beyond Currency Market Commentary:Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.