Bank of England set to play for time before first rate cut

The Bank of England will probably keep investors guessing next week about when it is likely to start cutting interest rates as it waits for clearer signs that inflation pressures still in the economy really are being quashed. With other central banks moving towards cutting borrowing costs for the first time since the COVID pandemic, and inflation set to fall to its 2% target soon, the BoE has put its high rates "under review". Governor Andrew Bailey maintained the tentatively optimistic tone this week when he said inflation expectations seemed to be under control and worries about a price-wage spiral were easing.