Preview: BoE To Cut Rates In August, While Keeping A “Careful and Gradual Approach”

By Brunello Rosa and Nato Balavadze

In this paper we discuss:

• The stagnation of the UK economy, with rising inflation; 
• The expected rate cut in August by the BOE, in a likely split vote; 
• The expected downgrade in UK growth forecasts, with rising inflation  – a stagflation scenario
• The market reaction that may follow the decision and press conference. 

Download PDF: BoE Preview August 2025