Institution: The Bank of England's next move may be to cut interest rates

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Golden Finance reports that on June 17, T. Rowe Price economist Tomasz Wieladek said in a report that the Bank of England’s next move is more likely to be a rate cut rather than a rate hike. The UK’s inflation rate in May held steady at 2.8%, for the second consecutive month below expectations. Food inflation was noticeably weaker than expected, and even excluding food, most categories’ contributions to May’s inflation leaned downward. “It seems that the UK’s monetary policy has finally taken effect. The long-term restrictive monetary policy has, to some extent, weakened inflation momentum,” Wieladek said. Therefore, policymakers will conclude that there is no need for further rate hikes to stabilize inflation, especially considering the impact of the Middle East conflict on the real economy.
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