BoE expects to cut rates
The Bank of England is on the verge of cutting interest rates on Thursday to fresh record lows along with another easing measures just to head off economic weakness after the Great Britain made up its mind to break up with the European Union, and data started suggesting that the UK’s economy might be facing another downtime.
Market participants increased their bets to 100% odds that Britain’s number one financial institution will drop interest rates to 0.25%, a fresh record minimum, after post-Brexit data revealed that British manufacturing activity got to its lowest level since early 2013, while preliminary service activity sank to its weakest since 2009.
The Bank of England has held its interest rates at the current historic minimum of about 0.5% since March 2009. Up to 45 out of 47 financial experts polled by Bloomberg told that the British major financial institution was most likely to drop interest rates, while a Reuters survey pointed to a 25 basis point reduction.