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2025-09-18 15:49:47
Mitsubishi UFJ: There's little chance of a Bank of England rate cut in September, but a December cut remains possible. Mitsubishi UFJ stated that the Bank of England will hold interest rates steady in September, following a narrow vote to cut in August. With little likelihood of a rate adjustment, market focus will be on the split in the vote, fine-tuning of policy guidance, and the annual decision on the pace of quantitative tightening. A 7-2 vote is expected to maintain the current rate, with Taylor and Dhingra voting for a rate cut. Policy guidance will continue to indicate a gradual decline in interest rates, but looking ahead, the Bank of England appears prepared to slow the pace of rate cuts to reflect the lack of consensus on easing. A December rate cut remains possible, but it will likely be another close call. Regarding the balance sheet, the market generally expects the pace of quantitative tightening to slow from the current annual pace of £100 billion. This figure is expected to be revised to £60 billion, implying a slight reduction in active sales compared to the previous 12 months.
