Morgan Stanley: The Bank of England may hint at further interest rate cuts this week

Jinshi data news on December 18th, Morgan Stanley's UK economist Bruno Scarica said in a report that after the release of November inflation data in the UK on Wednesday, the Central Bank of the UK may signal further interest rate cuts in tomorrow's interest rate decision. UK monthly core inflation remained flat, below analysts' expectations, due to a slowdown in service sector inflation. The lower than expected core inflation rate may prompt the Central Bank of the UK to signal more interest rate cuts than the market expects in the coming months. Data shows that the market expects the Central Bank of the UK to cut interest rates by 49 basis points in 2025. Scarica said, we expect the next interest rate cut by the Central Bank of the UK to be in February, with a total of 125 basis points cut next year.