News / Forex / Bank of England Weighs First Rate Cut Since 2021 Amid Persistent Inflation Concerns

Bank of England Weighs First Rate Cut Since 2021 Amid Persistent Inflation Concerns

Published: 13.08.2024 13:37 GMT+01

The Bank of England (BoE) will rely on the latest monetary policy report to guide its decision on Britain's first interest rate cut since the tightening cycle began in late 2021. Although UK CPI has reached the medium-term target of 2%, services inflation—a particularly persistent component—continues to remain high, delaying the reduction of interest rates. However, if the updated forecasts indicate a slower rise in inflation, the Monetary Policy Committee (MPC) could lean toward a slight majority in favor of a 25-basis point rate cut this time.

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