• Home
  • Blog
  • BoE: Much closer to the June interest rate cut

BoE were much closer to a June interest rate cut than first thought..

The odds of an August interest rate cut in the UK have increased after yesterday's MPC guidance. The bank kept rates unchanged at 5.25%, but 3 of the 7 'holders' were strongly considering to vote for a cut yesterday. 

With no BoE meeting in July, it leaves the Pound with a bit of a free hit in the month, before we will likely see some downside volatility in August (when a rate cut is now expected). A rate cut will devalue the Pound, but by how much is too difficult to call at this time.

Earlier today, the UK released its PMI report for the month. It showed the UK has slowed its growth rate (52.9 down to 51.2) and missed estimates. Luckily enough, so did the EU who released far more concerning figures especially in France & Germany. 

On the plus side, the erratic UK retail sales figure posted better than expected and was far higher than previous for May (2.9% v -1.8%) and UK consumer confidence has risen for its third consecutive month. 

On this day -

In 1788, the US Constitution comes into effect

In 1854, the first Victorian Cross is won during the Crimean War

In 1948, Lord Mountbatten resigns as Governor General of India, the last viceroy 

In 1993, English mathematician Andrew Wiles completes the worlds most difficult maths problem set by French mathematician Pierre de Fermat 356 years prior