Market Outlook: Low Probability of BoE Rate Cut Next Week

Foreks - Suren Thiru, the Director of Economics at the Chartered Certified Accountants Institute, stated that despite the unexpected economic contraction in the United Kingdom in October, the likelihood of the Bank of England lowering interest rates in its meeting next week remains low. Data confirms that the economy has been in poor condition ahead of the government's budget announcement. Thiru noted that declining construction and production outputs have led to a surprising drop in overall activities. He expressed that the effects of the budget and increased global uncertainty may have also reduced activities in November and December. “The possibility of a rate cut this month remains low due to some policymakers being sufficiently concerned about the recent rise in inflation and potentially delaying any easing of policy until February,” Thiru added.