Bank of England moves towards rate cut: inflation in the UK stabilizes

airdrop_whisperer · 2026-02-13T01:07:18+00:00

The debate over a possible interest rate cut in the United Kingdom is intensifying, with expectations of reductions already priced in for July. However, the current hold at 3.75% suggests caution, given the weak economic outlook.

airdrop_whisperer

2026-02-13 01:07:18

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As inflation gradually eases in the United Kingdom, the debate over a potential interest rate cut by the Bank of England is gaining traction in financial circles. Industry experts believe that current economic conditions could justify a downward revision of interest rates in the coming months.

The market already prices in a rate cut in July

According to data from LSEG, market participants have already incorporated expectations of a rate reduction by the Bank of England by July into their assessments. However, in the short term, during Thursday’s rate meeting, market consensus suggests keeping the interest rate steady at 3.75%. The likelihood of further cuts throughout the year remains limited, indicating some caution among analysts.

Weak economic outlook and downward revisions

Peter Goves of MFS Investment Management highlighted that demand prospects in the UK remain weak, a factor that could prompt the central bank to recalibrate its inflation trajectory downward. This scenario reflects an economic environment characterized by moderate growth, where a rate cut could play a significant role in the Bank of England’s economic stimulus strategies.

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