Central Banks
Bank of England May Kick Off Slow Cycle of Interest Rate Cuts
- Economists expect a move on Aug. 1, but markets aren’t certain
- Governor’s silence fuels debate about first cut since pandemic
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The Bank of England is likely to warn investors not to expect a string of back-to-back interest rate cuts if its policymakers push ahead with a first reduction in a knife-edge decision this week.
Most economists expect the UK central bank to reduce rates for the first time since the start of the pandemic on Aug. 1, according to a Bloomberg survey. Many predicted a close vote and investors are even less certain, betting the chances of a quarter-point move lower at this meeting are only 45%.