Bank of England to Cut Interest Rates in August, Further Reductions Expected

Bank of England to Cut Interest Rates in August, Gradual Reductions Expected

The Bank of England is expected to reduce interest rates in August, with gradual cuts to follow, according to Michael Brown, senior research strategist at Pepperstone. He predicts that future rate reductions may continue into November, in line with the policies of other developed central banks.

The pace of these adjustments is expected to be gradual, helping the Bank of England align its monetary policy with that of G-10 peers. These cuts are likely to provide some stability for the sterling, protecting it from significant medium-term risks.

However, an August rate cut will depend on whether inflation pressures continue to ease and if June CPI data does not present any unexpected challenges.