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2025-09-12 21:54:38
[Money lament resurfaces regarding a Bank of England rate cut, with fourth-quarter policy direction weighing on foreign exchange markets] ⑴ A recent survey by an institutional investor shows that 42 economists expect the Bank of England to cut interest rates by 25 basis points to 3.75% in the fourth quarter, while another 22 experts predict they will remain unchanged, representing a significant divergence. ⑵ The Bank of England has maintained a quarterly rate cut cadence since the third quarter of 2024, having already implemented five cuts, but is expected to hold off on further action at its September 18th meeting. ⑶ Market focus is on the two interest rate decisions on November 6th and December 18th, and uncertainty over the monetary policy path is likely to exacerbate volatility in the British pound. ⑷ Current interest rate market pricing reflects investors balancing domestic inflationary pressures with the risk of a global economic slowdown, leading to a repricing of the British pound's interest rate advantage against major currencies.
