Bansi Madhavani, an economist at ANZ Bank, said the Bank of England will keep its base rate unchanged at 5.0% at its September policy meeting. She believes that given that service sector inflation is far from reaching a level consistent with a sustained 2% inflation rate, the central bank will take a gradual approach early in the easing cycle. The Bank of England cut interest rates in August and may cut again in November.
Madhavani said that economic weakness and progress in reducing inflation will pave the way for a 150 basis point rate cut in this round of easing cycle. (Jinshi)