Deutsche Bank: The prospect of gradual interest rate cuts in the UK is favorable for the pound

ChainCatcher message, Deutsche Bank stated in a report that the Bank of England released cautious signals regarding future interest rate cuts on Thursday, indicating a positive outlook for the pound in the coming months. Analyst Michael Pfizer said that the Bank of England is unlikely to cut rates in December, as it has raised its inflation expectations for 2025-26 and economic growth expectations for 2025.

The Bank of England has "clearly" taken into account the UK's recent budget, which may be more expansionary in the short term than previously expected. "This suggests that the Bank of England will continue to cut rates at a much slower pace than the European Central Bank, while the growth rate of the UK economy may be much faster than that of the Eurozone."