Bank of England may cut interest rates in case of soaring inflation

The Bank of England may cut interest rates again on Thursday, as higher taxes and cautious consumer attitudes are hindering economic growth in the UK and causing businesses to slow down hiring. The Monetary Policy Committee is widely expected to lower the benchmark interest rate by 25 basis points to 4%, continuing the pace of rate cuts once per quarter. UK Chief Economist Dan Hanson stated, "We believe the Bank will cautiously signal more rate cuts - inflation is higher than expected, and price expectations remain elevated." Bank of England Governor Andrew Bailey insisted that the recent spike in price pressures will be temporary. Officials will release a quarterly forecast update following inflation rates higher than the May forecast.