Economists see UK cutting interest rates more substantially as inflation pressures ease

Economists are predicting that the U.K. will see interest rates drop more quickly than anticipated, as inflationary pressures seem to be easing. Data shows that the Bank of England may cut rates by a quarter-point in November and December, with further decreases expected in 2025. However, some economists believe that rate cuts could be even lower than market expectations due to declining inflation and comments from BOE policymakers. The upcoming Labour government’s budget will be crucial in determining the economic impact and could influence the pace of monetary easing. Uncertainty remains regarding the government’s fiscal consolidation efforts, but looser fiscal policy could potentially lead to a pause in rate cuts.