The Bank of England is inching towards the first rate cut, which we expect in August. Expect an optimistic air to Thursday’s meeting but we think the Bank will stop short of rewriting its forward guidance, which would be tantamount to endorsing a June rate cut at a time when the near-term direction of UK inflation is still uncertain.

Bank of England Governor Andrew Bailey has said inflation is moving in the right direction but some of his fellow interest rate-setters have sent different messages on how quickly the BoE should move towards a first cut in borrowing costs since 2020.

The Bank of England is holding back on reducing interest rates despite inflation simmering down a bit. Huw Pill, the chief economist for the bank, recently

The Bank of England is right to draw a distinction between the UK and US inflation outlook. We expect the first rate cut to be in August or maybe even June. Click to read.

The Bank of England must decide next week whether to update its message about when it might cut interest rates for the first time in four years, a move which could yet prove risky despite a sharp drop in inflation.

Banks hike mortgage rates as Bank of England interest rate cut expected to be delayed - Mortgage brokers said that homeowners are set for a summer of ‘discontent’

Many homeowners could face higher monthly payments after some of the UK’s biggest lenders confirmed mortgage rate increases. HSBC, NatWest, Barclays, and Leeds Building Society have raised their rates on fixed-term loans,