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2025-12-15 18:23:22
[Internal Divisions Within the Bank of England: Governor's Vote Decides the Outcome, Is a Rate-Cutting Cycle Beginning?] ⑴ Deutsche Bank analyst Sanjay Raja predicts that Bank of England Governor Andrew Bailey, having seen sufficient evidence of weakening wage growth and declining inflation in consumer and service prices, will cast a decisive vote this week in favor of a rate cut. ⑵ He predicts a 5-4 vote at this meeting, with Governor Bailey's stance being crucial. ⑶ Since the similarly 5-4 split in November, new data shows a slowdown in UK GDP growth in the third quarter, and weakening labor demand. ⑷ Raja believes policymakers may abandon the "gradual" wording in their policy guidance, adopting a more neutral, data-driven forward-looking stance. ⑸ He expects the Bank of England to cut rates twice more in March and June 2026, ultimately bringing the final interest rate to 3.25%.
