Bank of England Cuts Rates, Warns of Inflation Pressures Ahead

The Bank of England has cut interest rates to 4.75%, with expectations of gradual further reductions. However, the recent UK budget and Donald Trump’s election victory are likely to increase inflationary pressures, potentially slowing the pace of future rate cuts. This marks a shift from the post-2008 era of deflation concerns to a higher interest rate environment, distinct from both the pre-2008 and post-2008 periods.