UK Interest Rate Cuts May Accelerate Amid Economic Changes

According to Odaily, Luke Bartholomew, a senior economist at investment firm Abrdn, has indicated in a report that upcoming increases in UK employer national insurance contributions and the national living wage could prompt the Bank of England to accelerate interest rate cuts in the latter half of this year. Recent data from Tuesday shows that the average wage growth rate is expected to rise to 5.9% by the end of 2024, suggesting that interest rate reductions will continue gradually. However, the primary challenge will be how the labor market responds to changes announced in the government's autumn budget. There are clear signs that hiring intentions are cooling. If economic growth remains sluggish, the Bank of England may indeed expedite rate cuts later this year.