Commerzbank: The Bank of England is cautious about cutting interest rates in the future, and the pound is on a good trend

According to Jinshi Data, Commerzbank pointed out in its report that the Bank of England has sent cautious signals about future interest rate cuts, which indicates that the pound will perform well in the coming months. Analyst Michael Pfizer said that the Bank of England is unlikely to cut interest rates in December because it has raised its inflation forecasts for 2025-26 and economic growth for 2025.

The Bank of England has factored in its recent budget, which is likely to be more expansionary in the short term than previously expected. This suggests the BoE will cut interest rates at a much slower pace than the ECB, while the UK economy is likely to grow much faster than the eurozone.