According to Jinshi Data, Morgan Stanley analyst Bruna Scarica stated that the Bank of England may accelerate the pace or extent of interest rate cuts in the second half of 2025. Due to the uncertainty regarding potential tax increases in the autumn budget, economic growth is expected to slow in the coming months.
Scarica pointed out that the decline in economic activity may prompt the Bank of England to cut rates faster than the market expects. She forecasted that the Bank of England's benchmark interest rate will decrease from the current 4.25% to 3.25% by the end of the year.