Bank of England Seen Holding Rates Steady Despite Cooling Inflation
• Analysts suggest Bank of England may recognize progress on inflation but is unlikely to cut rates yet • Inflation has fallen but remains above 2% target; bank wants to avoid cutting too early and risk price rises again • UK economic growth stagnant; unclear if labor market and wages have fully recovered • Core inflation could drop rapidly below 2% target, putting pressure on bank to cut rates • Bank independence faces test Thursday; shift from rate hike language expected but cuts unlikely in election year