Meanwhile,
Bank england: drop rate expected:
Despite the unexpected acceleration of inflation recorded in June, at 3.6% over a year, far from the target of 2%, economic activity should be the subject of priority concern of the institution. In addition,
The Bank of England (BOE) is expected to lower its master rate of a percentage point on Thursday. Furthermore, to 4%, to support an economy in trouble, that American customs duties could affect a little more.
Despite the unexpected acceleration of inflation recorded in June, at 3.6% over a year, far from the target of 2%, economic activity should be the subject of priority concern of the institution.
This would be. Meanwhile, if the consensus of analysts is confirmed, of the fifth decrease since the start of the monetary easing cycle of the British central bank in August 2024.
The BOE Monetary Policy Committee “is faced with bank england: drop rate expected an unvatable dilemma” with the degradation of the “data on the health of the British economy”. estimates Matthew Ryan, market specialist for Ebury.
Growth has slowed down for the second month in a row in May in the United Kingdom. and the unemployment rate reached 4.7%. an unprecedented level in almost four years, a sign of a slowdown in employment in the wake of an increase in employer contributions decided by the Labor Government.
In addition. after a commercial agreement formalized at the end of June with Washington, British products entering the United States is now taxed at 10 %.
But if this rate remains more advantageous than the 15 % imposed on the products of the European Union. London does not leave unscathed and the Bank of England has warned against the broader repercussions of the trade war on the British economy, open and strongly integrated into the world bank england: drop rate expected exchanges.
Inflation remains on its high side. but it has clearly slowed down since its peak at more than 11% at the end of 2022.
“The BOE believes that the increase in inflation will be a temporary effect of repercussions by companies of employer contributions on consumers”. and should diminish next year, notes Kathleen Brooks, director of research at XTB.
During its last meeting in June, the institution had played the card of prudence, maintaining its unchanged key rate.
The American federal reserve. which opted for a status quo on its rates at the end of July, in a range between 4.25% and 4.50%, should lower them in September.
The European Central Bank has also recently kept its unchanged rates. satisfied with the appeasement of inflation in the euro zone.
Bank england: drop rate expected
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