Central Banks
BOE Rate-Cut Signal Set to Hand Feel-Good Factor to Starmer
- Rishi Sunak hoped economic pickup would help Conservatives
- Lower interest rates underpin forecasts for stronger growth
Keir Starmer
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The “feel-good factor” UK Prime Minister Rishi Sunak hoped would materialize during his term in office may instead arrive just in time to benefit his opponent, the Labour leader Keir Starmer.
The Bank of England hinted Thursday that policy makers could be ready to cut interest rates as soon as Aug. 1 — just 28 days after the general election that Sunak called for July 4. With Sunak’s Conservatives on track for a wipeout, it could be Starmer enjoying a tailwind from the lower borrowing costs and stronger growth Sunak has promised are on the way.