Bank of England to cut interest rates to 3.5 per cent, City firm predicts

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Bank of England to cut interest rates to 3.5 per cent, City firm predicts

The Bank of England will cut interest rates to 3.5 per cent by early 2026, analysts at Capital Economics said, despite signs that inflation will rise to nearly twice the two per cent target. Paul Dales, chief UK economist at the City consultancy, said it was “very unusual” for the Bank of England to cut interest rates when inflation is expected to rise further even further above target. Inflation currently stands at 3.0 per cent, and the Bank of…