From Morningstar: 2024-09-09 06:22:00

The Bank of England is preparing for its next Monetary Policy Committee meeting with expectations of no change in interest rates, currently at 5%. Markets are pricing in a potential rate cut later this year, especially with inflation slightly increasing to 2.2% in the 12 months to July. The UK government is anticipating economic pain and preparing for tax rises in its upcoming Budget.

The Bank of England’s cautious approach to interest rate cuts post-Brexit has analysts divided. While some believe the Bank should focus on reviving the struggling economy, others argue that it is currently being too cautious. The US Federal Reserve, facing disappointing job vacancy figures, is expected to cut rates this month. Equity and bond markets await the Bank of England’s decision and its impact on asset classes based on growth outlook and inflation risks.



Read more at Morningstar: Bank of England Rate Decision Preview: What to…