News
Markets expect 0.25% interest rate cut this week
The first interest rate cut in seven years could be on Thursday, according to financial markets, which are pricing in a 75% chance of the move from the Bank of England to calm the reeling economy.
Speaking to the Financial Times over the weekend, Capital Economics spokesman Jonathan Loynes said he didn’t think the Monetary Policy Committee, which meets on Thursday, would want to ‘disappoint market expectations.’
At the end of June, Bank of England Governor, Mark Carney hinted broadly a rate cut could be on the way over the summer and has been roundly criticised by Brexit supporters for promoting ‘doom and gloom.’
However, a poll of 52 economists from Reuters suggested a cut of 0.25% was more likely on 4 August or September.
The monthly Monetary Policy Committee meets on Thursday this week with its decision expected at midday.
The last rate cut was in March 2009.
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