Deutsche Bank: It is expected that the Bank of England will only cut interest rates once again this year

According to a report by Golden Finance, Sanjay Raja, an analyst at Deutsche Bank, stated that the latest policy decision by the Bank of England may trigger a rethinking of future policy paths. He said that the trade-off between rising inflation and weak labor markets has intensified the uncertainty of policy paths. Due to the 4-4-1 vote result, the internal divisions within the Monetary Policy Committee have intensified, giving the impression that bank interest rates are less restrictive than before. Deutsche Bank currently expects the Bank of England to only cut interest rates once in November this year, compared to the previous expectation of two cuts, but it may be postponed until December. It is expected that interest rates will be reduced quarterly, with a final rate of 3.25% by the second quarter of 2026.