The message conveyed by the Bank of England continues to focus on inflationary pressures.

On August 7, Jin10 reported that Fitch’s chief economist Brian Coulton said that the Bank of England’s policymakers seem generally willing to keep interest rates within a restrictive range. In a report, he stated that the vote to lower the benchmark interest rate by 25 basis points to 4% was passed by a margin of 5 votes to 4 and cannot truly be described as a dovish rate cut, even though rate setter Allen Taylor initially pushed for a 50 basis point cut. The message conveyed by the Bank of England emphasizes the increased risks to the medium-term inflation outlook and the possibility that rising food prices could boost household inflation expectations. Despite clearer evidence that the labor market is weakening and wage pressures are easing, we do not expect another rate cut before November.