FX.co ★ BoE Expected to Cut Rates

The Bank of England is anticipated to reduce interest rates by 25 basis points to 4.25% on Thursday. This would be the fourth rate cut amid rising concerns over economic slowdown, particularly in light of Donald Trump’s tariffs. This meeting is the first since the tariffs were declared, and market participants will be keenly observing for any changes in the bank’s rhetoric or economic projections. Inflation dropped more than anticipated in March, decreasing to 2.6% from the previous 2.8%, which strengthens the argument for a rate reduction. Additionally, attention will be directed towards the vote distribution among the Monetary Policy Committee members and whether the bank retains its "gradual and careful" stance on easing. The markets have almost completely priced in four rate cuts by the end of the year. The Bank of England has opted to delay its announcement slightly to 11:02 PM GMT, at which time it will disclose the rate decision, updated forecasts, and meeting minutes.