FTSE 100 Live 18 February: Index extends record as BAE Systems surges, rate cut seen

It added: “If we are right in thinking that CPI inflation will average 1.8% in the fourth quarter of this year, then the MPC may ultimately end up cutting rates further than investors expect, to 3% this year, with the chances of the next rate cut happening in March rather than our current forecast of April edging higher.”