The Bank of England (BoE) is expected to cut interest rates by 25bp at its meeting today

The Bank of England (BoE) is expected to cut interest rates by 25bp at its meeting today, Thursday, February 6, 2025.

This will be the third cut of the cycle so far.

The Bank’s Monetary Policy Committee is pondering

• a weak economy with nevertheless persistent inflation (inflation was 2.5% in December, above the BoE’s 2% target, and may rise to 3% in January due to higher domestic fuel costs)
• tax hikes,
• potential global trade tensions,
• and rising wages.

Despite economic stagnation, inflation pressures limit how much the BoE can ease rates:

• current Bank Rate is 4.75%, above peers such as the ECB and Fed

This article was written by Eamonn Sheridan at www.forexlive.com.