Barclays: Expects the Bank of England to maintain interest rates with an 8:1 vote

ChainCatcher message, Barclays analysis expects the Bank of England to support maintaining interest rates unchanged with a vote of 8 to 1, and to reduce the Asset Purchase Facility (APF) assets by £100 billion.

"We believe that Ramsden and/or Taylor have a certain probability of voting alongside Dingra in favor of a rate cut, so our expected voting ratio of 1-8 has a bias towards a risk of 3-6." The tone of the meeting statement is expected to remain cautious while acknowledging that inflation has made further progress towards a sustainable return to target. The existing guidance around the need to maintain restrictive policies may remain unchanged. Interest rates are expected to be cut by 25 basis points in November, December, and next year in February, May, and August, reaching 3.75% by August 2025.