The Bank of England keeps interest rates unchanged, but may soon cut interest rates again.

According to reports, the Bank of England announced on Thursday that it will keep the benchmark interest rate unchanged, following the footsteps of the Federal Reserve. At the same time, the Bank of England is expected to further cut interest rates in the coming months. Since mid-2024, as inflation pressures have begun to ease, the Bank of England has been gradually lowering interest rates, but it is currently facing a dilemma. The UK's main inflation rate in May remains high at 3.4%, well above the 2% target. The rise in energy prices and the impact of Trump's tariff measures have also made some policymakers uneasy about continuing significant rate cuts. Prior to the Bank of England's rate announcement, the market expected the next 0.25 percentage point rate cut to take place in September, but it was not fully priced in, and another cut was expected in December. After the rate decision was announced, traders increased their bets on the Bank of England cutting rates, expecting another 50 basis points cut later this year.