According to Jinshi Data, ANZ economist Bansi Madhavani said that the Bank of England will keep the benchmark interest rate unchanged at 5.0% at the September policy meeting. She believes that given that the service industry inflation rate is far from reaching a level consistent with a sustained 2% inflation rate, the central bank will take a gradual approach in the early stages of the easing cycle.
The Bank of England cut interest rates in August and is likely to do so again in November. Madhavani said economic weakness and progress in reducing inflation would pave the way for a 150 basis point rate cut in this easing cycle.