Lates News

Deutsche Bank analyst Sanjay Raja wrote that the Bank of England may not cut interest rates until the end of the year. The Bank of England lowered its interest rate to 4.00% last month, but indicated caution towards inflation. Raja suggested that due to a significant portion of the Bank of England's Monetary Policy Committee leaning towards pausing, Governor Bailey is likely to do the same. He pointed out that the UK government will announce the budget relatively late in November, which may lead the Bank of England to be more willing to wait until the fiscal situation is clearer before cutting rates. Raja mentioned that more data on the UK economy and inflation trends will also be released at the December meeting. He stated, "In short, due to a well-balanced decision in August, the Governor of the Bank is more likely to wait until the end of the year to cut rates again."