Deutsche Bank: Bank of England will wait until December to cut interest rates again

Deutsche Bank analyst Raj wrote that the Bank of England may not cut interest rates until the end of the year. The Bank of England lowered its benchmark interest rate to 4.00% last month, but indicated caution about inflation. Raj stated that because a significant portion of the Bank of England's Monetary Policy Committee leans towards pausing, Governor Bailey is also likely to favor this approach now. He pointed out that the UK government will announce its budget relatively late in November, which could make the Bank of England more willing to wait until the financial situation is clearer before cutting rates. Raj said that more data on the direction of the UK economy and inflation will also be released at the December meeting. He said: "In short, due to a well-balanced decision in August, the Governor of the Bank may be more inclined to wait until the end of the year before pulling the trigger on another rate cut."