The Bank of England just shook the markets! Governor Andrew Bailey announced that interest rates might be cut, and the pound immediately dropped to its lowest level since June 23. Annual inflation fell to 3.4% in May but remains far above the 2% target. The economy shrank by 0.1% in May and 0.3% in April, adding pressure on the Bank of England and the London government to ease business conditions. ECB’s chief economist Philip Lane says inflation is almost tamed, but is that enough? The next rate decision is expected on August 7, with the probability of a cut jumping to 85% from 76% last week. Will the Bank of England save the pound or will it keep sinking? Follow along and drop your thoughts – is this the end of the strong pound era or just another central bank game? Buckle up, it’s going to be a wild ride on the financial markets!
Bank of England Governor Signals Rate Cuts as Pound Hits Lows
