Deutsche Bank: Expects the Bank of England to cut interest rates only once more this year

ChainCatcher news, Deutsche Bank analyst Sanjay Raja said in a report that the Bank of England's latest policy decision may prompt a reevaluation of the future policy path. He noted that the trade-off between rising inflation and a weak labor market has intensified the uncertainty surrounding the policy trajectory. The 4-4-1 voting outcome has exacerbated divisions within the Monetary Policy Committee, giving the impression that the constraints on bank rates are less than before.

Deutsche Bank currently expects that the Bank of England will only cut rates once more this November, down from previous expectations of two cuts, although this may be postponed until December. It is anticipated that subsequent cuts will occur quarterly, with a final rate of 3.25% by the second quarter of 2026.