Analysts: Bank of England expected to resume cutting interest rates by 25 basis points

Odaily reports that the Bank of England will announce its interest rate decision tonight. Most experts predict that it will cut rates by 25 basis points to 4.5%, continuing a series of rate cuts that began last summer. Hymans Robertson analyst Chris Arcari said that when the Bank of England cuts rates further later this year, it will have to "walk a tightrope". He said that while the current economy leaves room for a "moderate rate cut", the Bank of England may take a cautious stance towards the future. The rise in cost inflation is partly related to the impact of the policies announced in the October budget. UK Finance Minister Rishi Sunak raised national insurance contributions for businesses last October. This was aimed at spending more government funds on public services, but some companies complained that this pushed up costs and exacerbated inflation. Ebury analyst Matthew Ryan added that with economic growth stagnant but inflation rising, the Bank of England "will have to make a judgment on which risk is likely to dominate this year".