BOE holds interest rate while SNB cuts for the second time

The Bank of England has maintained its key interest rate at a 16-year high of 5.25% during its seventh consecutive meeting, aligning with investors’ and economists’ expectations.

However, the central bank hinted that it might follow other European peers by reducing borrowing costs in the coming months.

While the Federal Reserve remains unlikely to lower its key interest rate soon, other European central banks have already cut interest rates this year.

For instance, today, the Swiss National Bank (SNB) reduced its key interest rate by 25 basis points to 1.25% for the second time this year. Approximately two-thirds of economists had anticipated this rate cut, leading to a weakened Swiss franc.

Despite the decline in U.K. inflation due to falling energy and food prices, the Bank of England remains cautious.

It believes that rising service prices could push inflation back above its 2% target in the second half of the year, especially if wages continue to increase rapidly.

Although economists expect the Bank of England to lower its key rate at the next meeting, some suggest waiting until November.

Recent data indicate only modest slowdowns in wages and service prices, leaving uncertainty about whether the Bank of England will cut rates before the Fed.

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Read the full disclaimer

Sign up to receive my latest articles in your inbox

I agree that my data is used according to the privacy policy



Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.