HSBC: The Bank of England may cut interest rates again next month.

Hussain Mahdi of HSBC Asset Management Company stated in a report that following the benchmark interest rate cut by 25 basis points to 4.25% on Thursday, the Bank of England may cut interest rates again next month. "With inflation data moving in the right direction, the Monetary Policy Committee now appears more willing to cut interest rates. We believe that a rate cut is necessary to boost economic growth and potentially ease the pressure on government financing costs." He said that the Bank of England may cut interest rates by a total of 125 basis points this year. If service sector inflation and wage growth continue to slow, the rate cut may come as early as next month.