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Bank of England Poised to Cut Rates Amid Economic Slump

7/12/2025

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Story summary
  • The Bank of England may lower interest rates next month amid economic contraction.
  • Money markets show an 89% probability of reducing the Bank Rate from 4.25% to 4% in August.
  • UK GDP fell by 0.1% in May, following a 0.3% decline in April.
  • Retail sales declined significantly due to higher National Insurance contributions and minimum wage increases.