Morgan Stanley: The Bank of England may accelerate the pace of rate cuts in the second half of the year.

Jin10 data July 3rd, Morgan Stanley analyst Bruna Scalica stated in a report that the Bank of England may accelerate the pace or magnitude of interest rate cuts in the second half of 2025. Scalica mentioned that due to the uncertainty of potential tax increases in the autumn budget, economic growth is expected to slow in the coming months. She stated that the decline in economic activity may prompt the Bank of England to cut rates faster than the market expects. Scalica noted that the Bank of England’s benchmark interest rate is expected to drop from the current 4.25% to 3.25% by the end of the year.