UK Inflation Eases, Potential Rate Cut by Bank of England Anticipated

MFS Investment Management's Peter Goves has indicated that with the easing of inflation in the UK, the Bank of England might consider a rate cut in the coming months. According to Jin10, despite this possibility, the market widely expects the Bank of England to maintain the interest rate at 3.75% during Thursday's rate decision. Goves noted that the demand outlook remains weak, suggesting the Bank of England is likely to revise its short-term inflation path downward. Data from LSEG shows that the market has fully priced in a rate cut by the Bank of England in July, while the likelihood of another rate cut this year is considered low.