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Threadneedle Street is being cautious but cuts will come
The Guardian
|March 21, 2025
Bank of England policymakers might be on a "go-slow" as they look forward to interest rate cuts this year, but the direction of travel is almost certain.
After a meeting yesterday where rates were kept on hold at 4.5%, City investors bet there would be more reductions in the cost of borrowing this year, probably two cuts reducing the rate to 4%.
And the signal from the Bank - with its resolve to bring the cost of borrowing into line with economic growth - should be enough for businesses and households to take a more confident view of their own and the nation's prospects.
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