Economists divided on future UK interest rate decisions

The Bank of England has delivered its third rate cut in six months, bringing the base rate down to 4.5%. While markets had widely anticipated this move, there is significant uncertainty surrounding future rate decisions. Inflation remains above the Bank’s 2% target, yet economic growth forecasts have been downgraded, creating a complex policy environment. Analysts are divided—some predict a cautious approach with gradual cuts, while others foresee more aggressive easing to stimulate the economy. With financial markets, mortgage holders, and businesses all closely watching the Bank’s next move,...