The Bank of England is odds-on to cut interest rates to 4 per cent at next Thursday\u2019s meeting, maintaining the rate of one reduction per quarter seen since August 2024. What happens next is less clear. The labour market is now materially weaker than it was at the start of the year, but at the same time inflation isn\u2019t going away: CPI rose unexpectedly in June from 3.4 per cent to 3.6 per cent. <\/p>\n
The Monetary Policy Committee is divided. In June it voted 6-3 to keep rates on hold; in May there were five votes for a 25bps cut, two for a hold and two for a 50bps cut. Once August is done, the market still sees one further base reduction this year as probable, but it\u2019s far from set in stone.<\/p>\n
As Deutsche Bank economists summed up last week, \u201ccalls for fewer rate cuts alongside calls for bigger rate cuts [on the MPC] will linger until we get further clarity around the economic outlook.\u201d<\/p>\n
Eurozone: Sentix investor confidence<\/p>\n
US: Factory orders<\/p>\n
Japan: BoJ meeting minutes<\/p>\n
UK: BRC retail sales<\/p>\n
China: Services PMI<\/p>\n
Eurozone: Composite & services PMIs, producer price index<\/p>\n
Japan: Services PMI<\/p>\n
UK: Composite & services PMIs<\/p>\n
US: Composite & services PMIs<\/p>\n
China: Imports\/exports, trade balance<\/p>\n
Japan: Leading economic index<\/p>\n
UK: BoE interest rate decision, Halifax house price index<\/p>\n
China: M2 money supply<\/p>\n
Japan: Current account, trade balance<\/p>\n
US: Inflation expectations<\/p>\n
Read more from Investors\u2019 Chronicle<\/p>\n","protected":false},"excerpt":{"rendered":"The Bank of England is odds-on to cut interest rates to 4 per cent at next Thursday\u2019s meeting,…\n","protected":false},"author":2,"featured_media":38316,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[84,4229,467,6884,56,54,55],"class_list":{"0":"post-38315","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-economics","10":"tag-markets","11":"tag-opinion","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/38315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=38315"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/38315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/38316"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=38315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=38315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=38315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}