Lates News

The Bank of England may cut interest rates for the fifth time in 12 months on Thursday, but continued concerns about inflation could lead to disagreement among its decision-makers and make the outlook for its next steps unclear. Governor Andrew Bailey and a majority of members of the Monetary Policy Committee are expected to support lowering the bank rate from 4.25% to 4%. They are making this decision due to slowing employment growth exacerbated by increased taxes for employers and the trade war initiated by US President Donald Trump. However, two members of the Monetary Policy Committee may propose a larger rate cut to boost the economy, while two others may oppose a cut due to concerns about inflation. This voting pattern, last seen in May, reflects the conflicting pressures facing the Bank of England. Investors will closely watch whether the Bank of England will stick to its "gradual and cautious" approach to reducing borrowing costs. Economists generally interpret this approach to mean that rates will be cut once every three months.