Sterling Could Fall If U.K. Budget Boosts Rate-Cut Bets -- Market Talk
U.K. Data This Week Could Show High Wage Growth Ahead of BOE Decision -- Market Talk
The Bank of England is expected to maintain interest rates unchanged, with economic slowdown and inflation expectations becoming the focus.
Recently, President Trump of the USA has repeatedly disrupted Global markets with his tariff policies. Economists warn that this could affect the Global inflation levels and have a ripple effect on the United Kingdom's economy. "The changes in the Global trade environment are complex, and we expect the BoE will not be eager to determine its impact on the United Kingdom economy." — Elizabeth Martins, Senior UK Economist at HSBC. Although the European Central Bank has lowered interest rates for the sixth time this month, the BoE has only made one rate cut since August last year, reflecting its more cautious policy stance. The latest data shows that the UK's GDP unexpectedly shrank in January.
Global uncertainty is increasing, the Bank of England may keep interest rates unchanged this week.
As the trade war initiated by President Trump of the USA takes effect, and given the mixed economic news from the United Kingdom, the Bank of England is likely to maintain the interest rate unchanged on Thursday, asserting that it will only gradually adjust rates in the future.
Debt expansion and growth slowdown create a dual squeeze as the United Kingdom's finance faces a critical stress test.
Under the dual pressure of debt expansion and sluggish growth, the United Kingdom's public finance system is about to face a critical stress test. Investors indicate that this could deliver another market shock to an economy increasingly reliant on unstable foreign capital.
Cautious BOE to Pause on Rate Cuts Again as Peers Complete Journey