Deutsche Bank: Bank of England may resume interest rate cuts next year.

Sanjay Raja of Deutsche Bank has stated in a report that the Bank of England may maintain interest rates unchanged for the remaining time of the year and could resume cutting rates in the spring of next year. The Bank of England voted on Thursday with 7 in favor and 2 against to keep the rate unchanged at 3.75%, with two policymakers leaning towards a 25 basis point hike. Raja said, "The need for swift action has diminished against the backdrop of better than expected data and the agreement between the US and Iran." He said that although the Bank of England still believes there are "upside risks to inflation," lower wage and price inflation give it more confidence that current price pressures are well contained.