Shengbao Bank: The Central Bank of the UK will cut interest rates by 25 basis points, making it difficult to send out a radical signal

Jinshi data, November 7th news, Shengbao Bank expects that the Central Bank of England will announce a 25 basis point rate cut at today’s meeting, with the Benchmark Interest Rate dropping from 5.0% to 4.75%. This will be the second rate cut in this round of easing, with the first rate cut in August. The monetary policy committee may vote 8-1 in favor of this move, with Manen being the only dissenting vote. She remains consistently hawkish and advocates keeping the Interest Rate unchanged. Considering the recently announced expansionary autumn budget, it is expected that the Central Bank of England will maintain a cautious tone. Even as the easing policy continues, policymakers are unlikely to take an excessively dovish stance that could disrupt the financial markets. The Central Bank of England may emphasize a gradual rate cut, sticking to the quarterly rate cut plan until 2025. Concerns about bond market stability will prevent the Central Bank of England from sending out more aggressive signals, especially in the case of a significant rise in government bond yields after the autumn budget announcement.