Investors bet on slower pace of rate cuts from Bank of England

25 basis points cut confirmed on Thursday

Sorin Dojan
clock • 3 min read

Investors reacted positively to the Bank of England’s decision to cut interest rates by 25 basis points to 4.75% on Thursday (7 November), despite the prospect of a slower rate-cutting cycle.

The BoE justified the cut by citing "continued progress" on inflation, with all but one member of the Monetary Policy Committee - Catherine Mann - voting to reduce the Bank rate at the meeting on Wednesday (6 November). As UK inflation dropped below the Bank's 2% target in September, the MPC said there had been "continued progress" on disinflation thanks to the unwinding of external global shocks, although "remaining domestic inflationary pressures are resolving more slowly". On the day of the Autumn Budget last week (30 October), the Office for Budget Responsibility said that Chancel...

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