Jin10 data reported on August 7, MHA economic advisor Joe Nellis stated in a report that the Bank of England's decision to lower the Benchmark Interest Rate is minimal, indicating that it prioritizes addressing weak economic growth and rising unemployment over curbing inflation. He noted that after nearly a year of high wage growth, signs of a decline have finally emerged, alleviating concerns about further inflation, although inflation remains tricky. He added that rising unemployment, slowing wage growth, and a decrease in job vacancies have increased the pressure on the Bank of England to support demand by lowering borrowing costs. If (business) profit growth slows further, another rate cut is expected this year, but if inflation cools faster than anticipated and economic conditions weaken further, there may be two rate cuts.
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The Bank of England places concerns about inflation above weak economic growth.
Jin10 data reported on August 7, MHA economic advisor Joe Nellis stated in a report that the Bank of England's decision to lower the Benchmark Interest Rate is minimal, indicating that it prioritizes addressing weak economic growth and rising unemployment over curbing inflation. He noted that after nearly a year of high wage growth, signs of a decline have finally emerged, alleviating concerns about further inflation, although inflation remains tricky. He added that rising unemployment, slowing wage growth, and a decrease in job vacancies have increased the pressure on the Bank of England to support demand by lowering borrowing costs. If (business) profit growth slows further, another rate cut is expected this year, but if inflation cools faster than anticipated and economic conditions weaken further, there may be two rate cuts.