“This cut in interest rates offers a well-timed helping hand to those households wrestling with high mortgage bills and businesses nervous over the prospect of more tax hikes in this Autumn’s Budget.
“Though rate-setters have been in policy loosening mode for a prolonged period, their particularly cautious approach means that interest rates are still high enough to be more of a hindrance than a help to businesses and households.
“The close vote split in favour of loosening policy suggests that policymakers are struggling to balance supporting a weakening economy with keeping a lid on rising inflation, inevitably casting doubt on further rate cuts this year.
“August’s policy loosening is likely the beginning of the end of this rate cutting cycle with the bank’s forecasts of higher inflation likely to push policymakers to press the pause button on interest rate cuts sooner rather than later.”
ENDS
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