Bank of England likely to slow rate-cut cycle this week

By David Milliken

LONDON (Reuters) -The Bank of England looks likely to keep interest rates on hold on Thursday, slowing its pace of cuts for the first time since it started to loosen policy last year, although some analysts do now expect a reduction after softer inflation and wage data.

The BoE’s most recent rate cut – by a quarter-point to 4% in August – only passed by a 5-4 margin after two rounds of voting by the Monetary Policy Committee.

In September, Governor Andrew Bailey said the pace of rate cuts, which the BoE has delivered once every three months since August 2024, was “more uncertain”.

British consumer price inflation remains the highest among major advanced economies at 3.8% due largely to one-off factors including April’s rise in employer social security charges.

Howeve