According to Odaily, ANZ economist Bansi Madhavani has indicated that the Bank of England is expected to keep its benchmark interest rate at 5.0% during its policy meeting in September. Madhavani suggests that due to the inflation rate in the services sector not aligning with the target of a sustained 2% inflation rate, the central bank will adopt a gradual approach in the early stages of the easing cycle.
The Bank of England had previously cut rates in August and may consider another rate cut in November. Madhavani believes that the combination of economic weakness and progress in reducing inflation will pave the way for a total reduction of 150 basis points during this easing cycle.