Boe Set To Cut Rates As Inflation Eases
The Bank of England (BoE) will announce its latest monetary policy decision on Thursday (08/05) at its third interest rate-setting meeting of 2025.
Markets widely expect the central bank to cut its benchmark interest rate by 25 basis points to 4.25% after skipping its meeting on March 20.
The Monetary Policy Committee (MPC) decision will be accompanied by the Minutes and Monetary Policy Report (MPR), which provide a glimpse into the internal debate, while Governor Andrew Bailey will speak to reporters in a post-decision press conference. His remarks will be scrutinized for any change in tone, particularly around inflation risks, potential interest rates and the likely timing of future rate cuts.
With the rate move largely priced in, the focus now turns to the Bank’s future direction and its latest economic outlook — key signals that could shape expectations for the months ahead. The Bank of England kept interest rates on hold in March, as widely expected, with all eight members of the Monetary Policy Committee voting to keep the key rate unchanged. Swati Dhingra was the lone dissenter, backing a 25 basis point cut as a form of support to build deflationary pressures.
The decision came alongside fresh inflation data that surprised to the downside. Figures from the Office for National Statistics (ONS) showed headline CPI fell to 2.6% in March, down from 2.8% the previous month. Core inflation, which excludes volatile food and energy prices, also eased, falling to 3.4% — a further sign that underlying price pressures are gradually easing.
Source: FXStreet
