Bank of England Poised to Maintain Rate Cut Cadence, Expected Decision at 12:00 UTC

The Bank of England (BoE) is scheduled to announce its pivotal interest rate decision along with an updated quarterly economic forecast later today at 12:00 UTC. The consensus among multiple financial institutions is that the central bank will reduce its rates by 25 basis points to 4.5%, continuing its strategy of quarterly rate cuts.Analysts from Goldman Sachs have underscored the decision's likely underpinnings, citing the UK's recent economic sluggishness, worsening labor market conditions, and a modest uptick in core service inflation as key factors favoring another rate reduction. Meanwhile, Deutsche Bank predicts an 8-1 vote in favor of the cut, highlighting broad support within the central bank for ongoing rate adjustments.According to IFR, a Reuters subsidiary, expectations are set for the BoE to reiterate its stance on the gradual easing of policy restrictions, maintaining a steady pace of rate reductions at least until August. However, there's a caveat: Ebury strategists warn that any unexpectedly aggressive rate cut signals could exert downward pressure on the British pound, potentially leading to a decrease in its value against other major currencies.Investors and market watchers are keenly awaiting the decision, which will significantly impact financial markets and potentially alter economic forecasts for the UK moving forward.