According to Jinshi Data, trading platform Ebury said that due to the tight labor market in the UK and rising inflation in the service industry, the Bank of England may take cautious interest rate cuts.
Ebury strategist Matthew Ryan pointed out in a report that the UK unemployment rate unexpectedly fell in the three months ending June and wages continued to grow rapidly, posing a major challenge to achieving the Bank of England's 2% inflation target.
Swap markets reflect about a one-in-three chance of another BoE rate cut in September, but Ebury thinks the BoE will wait until November before cutting rates and then cut further quarterly thereafter.
