Reuters Poll: BOE to cut bank rate by 25 basis points one more time this year

A Reuters poll is out and the survey of 65 economist show:

• 49 of 65 see one more cut between now and year-end.
• 16 of 65 see 2 rate cuts
• UK inflation to average 2.6% in 2024
• inflation to average 2.3% in 2025 (same as August poll).
• For this month, the expectations is that the central bank will keep rates unchanged at 5%

In August the Bank of England cut the bank rate to 5% from a 16 year high of 5.25%. The vote was 5-4. BOE Gov. Bailey said it would proceed cautiously to make sure inflation stayed low. Service inflation and wage growth are still about 5% making cutting rates more difficult for the central bank.

GDP released today showed the UK economy stalled in July (0.0% versus 0.2% expected.).

This article was written by Greg Michalowski at www.forexlive.com.