Bank of England Faces Rate Cut
BTC awaits decision
The Bank of England (BoE) will make the much-anticipated rate decision today with several policy watchers leaning towards a cut. However, this remains dicey amid macro factors like service inflation among others. An interest rate could serve as an added boost for crypto and other risky assets
Market Awaits Bank of England Decision
The Bank of England is in the middle of a rate cut dilemma sprung by macro factors. Proponents for a cut await the first move in four years while stressing that if the BoE doesn’t act now, a September date will be more difficult. With inflation down to 2%, several market participants expect the decision today. However, a major clog in the wheel is the services inflation data which came in at 5.7%. This was hotter than expected coupled with rebounding growth in recent months.
According to Bloomberg, economists reckon a tight 5:4 split votes today as participants brace for the next policy direction. The Monetary Policy Committee members seem divided in views with hawkish Catherine Mann likely to be against a rate cut while Swati Dhingra might back the move.
Andrew Bailey, Governor of the Bank of England has previously hinted at a policy direction on the way to rate cuts but skepticism trails whether it would come in August or delayed till September. If rates are slashed, homeowners point to lower mortgage payments as well as rent. On the flip side, savers are getting more with the status quo.
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