Deutsche Bank: The Bank of England is expected to cut interest rates only once more this year "
Sanjay Raja, an analyst at Deutsche Bank, said in a report that the Bank of England's latest policy decisions may trigger a rethink of the future policy path. He said the trade-off between rising inflation and a weak labor market has exacerbated uncertainty about the policy path. Disagreements within the Monetary Policy Committee intensified due to the 4-4-1 vote, giving the impression that bank interest rates are less restrictive than before. Deutsche Bank currently expects the Bank of England to cut interest rates only once again in November this year, compared with the previous forecast of cutting interest rates twice, although it may be postponed until December. Interest rates are expected to be cut quarterly thereafter, with the final interest rate of 3.25% by the second quarter of 2026.
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