🇬🇧 BOE Rate Cut Incoming Despite Soaring Inflation – What It Means for Crypto & Markets
📉 UK inflation is sitting at 3.6%, well above the 2% target… but the Bank of England is still expected to cut interest rates as early as August 7, citing rising unemployment and slowing economic growth.
💼 Why this matters:
Job market is cooling rapidly → Lower wage pressure expected
High inflation is now driven mostly by energy and regulatory costs, not consumer demand
A rate cut signals monetary easing, which typically benefits risk-on assets like Bitcoin and altcoins
📊 Crypto Angle:
Rate cuts = cheaper capital → More appetite for speculative assets
Bitcoin often performs well when central banks loosen policy
But sticky inflation could limit long-term bullishness
🚨 Investors Should Watch:
BOE’s tone post-decision (hawkish or dovish?)
UK services inflation (still hot at ~4.7%)
Global risk sentiment — especially with the Fed holding steady and Trump ramping up tariffs
📌 Takeaway:
Despite elevated inflation, the BOE is shifting toward easing — setting the stage for a more favorable macro backdrop for crypto… but volatility may rise if inflation refuses to cool.
Would you like a breakdown of how this may affect BTC, ETH, or top altcoins specifically?
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