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Bank of England Preview: Rates on Hold, but Inflation and QT Shape the Outlook
The Bank of England (BoE) is expected to hold interest rates steady at its September meeting, after cutting rates in August for the first time since 2020. Despite that rate cut, the BoE has continued to take a cautious approach, as emphasized by Governor Andrew Bailey at the Jackson Hole symposium. The upcoming meeting is likely to maintain this careful stance on easing policy. Key Expectations: • Rates on Hold: The BoE is likely to keep the base rate at 5%, signaling that it remains unconvinced inflation has been fully tamed. While inflation has cooled in recent months, services inflation remains a concern, ... (full story)