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2025-12-19 00:54:42
[Capital Economics: December Rate Cut by the Bank of England Won't Be the Last] In a report, Ruth Gregory of Capital Economics noted that Bank of England policymakers have reiterated their previous stance that interest rates will continue to be lowered gradually, suggesting that the December rate cut will not be the last. However, she also stated that there are clear signs that they do not believe a significant rate cut is necessary. Gregory pointed out that given their stated desire to assess labor market activity and wage growth, the three rate-setting members, including Governor Andrew Bailey, are likely to vote again to maintain the current interest rate. In fact, the sharp drop in the inflation rate in November failed to persuade the four members to change their stance of voting for the current rate. "This suggests that once rates fall to 3.5%, policymakers will need more convincing evidence before further rate cuts."
