Financial markets are already pricing in a 0.25% rate cut from the Bank of England in November, as recent data from the Office for National Statistics show that wage growth has cooled to 4.9% between June and August. It was previously 5.1%.
In a recent interview in The Guardian, Andrew Bailey, Governor of the Bank of England, said the bank could afford to be “bit more aggressive” with rate cuts. This came after the Fed cut their own rate by 0.5%, with a probable further 0.25% cut to come in November. It is now deemed likely by commentators and investors alike that a 0.25% is on the cards for the Bank of England.
The European Central Bank is expected to follow suit on Thursday 17th October, with a 0.25% seen as most likely to follow up two previous cuts this year. Markets have priced in further cuts by the end of the year.
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