Pressure grows on BoE as Canada cuts interest rates

THE City was looking forward to a summer of falling interest rates today, after a landmark cut from a major central bank added to the pressure on the Bank of England to join in.

- Michael Hunter

Canada became the first G7 nation to reduce benchmark borrowing costs. The milestone move for the club of richworld nations came overnight. Switzerland took similar action last month.

Rate-setters at the European Central Bank were gathering this morning, ahead of a widely expected quarter-point cut this afternoon to extend the trend.

The Bank of England will discuss following suit when its Monetary Policy Committee meets in two weeks' time. But Rishi Sunak's decision to call a general election for July 4 means the City now expects action later in the summer, after the voting is over.

September is now seen as the most likely timing for the long-awaited turning point.