BoE Preview: a pause before the next cut

The Bank of England is expected to maintain its current policies during the June policy meeting, with the Monetary Policy Committee (MPC) voting 8 to 1 in favor of the status quo. Following a three-way split vote to cut interest rates on May 8, the MPC has reiterated its commitment to a "gradual and careful" approach to policy easing. In April, UK inflation rose more than anticipated, and PMI data for May indicated a rebound in the services sector, both of which suggest that there is no immediate need for further rate cuts. However, signs of slowing wage growth and job losses point to the ongoing quarterly reductions in the Bank Rate (August, November) . This is particularly relevant given that the UK, as one of the most open economies, remains susceptible to challenges arising from global trade dynamics.