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2025-09-18 16:52:26
[Bank of England Holds Strategy, Path to Rate Cuts Remains Uncertain] (1) Economists at UBS Investment Bank stated in a report that they expect the Bank of England to hold interest rates steady in its interest rate decision, to be announced at 7:00 PM Beijing Time on Thursday. These economists believe that Bank of England policymakers may prefer to delay a rate cut until the UK's fiscal plans and inflation outlook become clearer. (2) They also suggest that the Bank of England may skip a rate cut in November. (3) Despite this, the Bank of England maintains its forecast for rate cuts through 2026. It projects three rate cuts of 25 basis points each by July 2026, bringing the interest rate to 3%. This forecast suggests that despite the uncertain prospects for rate cuts in the short term, the market remains optimistic about easing monetary policy in the UK over the medium to long term. (4) In the short term, the Bank of England is adopting a cautious approach amid uncertainty about inflation and fiscal policy, consistent with its mandate to stabilize the economy. (5) While future rate cuts remain a possibility, their timing and pace will depend on macroeconomic data, particularly inflation data.
