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Experts Predict Bank of England Rate Cuts Amid Deficit Concerns

10/28/2025

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Summary

Story summary

Rupert Harrison of Pimco predicts the Bank of England will cut rates below 3%.
He holds an overweight position in five-year gilts, reflecting confidence.
Craig Inches of Royal London Asset Management says gilts view the government as stable.
Speculation grows that Rachel Reeves may raise taxes to cover a £50 billion deficit, potentially lowering rates.
Riddell warns a drop in sterling would signal a market crisis, with the pound around $1.34.

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Story summary

Rupert Harrison of Pimco predicts the Bank of England will cut rates below 3%.
He holds an overweight position in five-year gilts, reflecting confidence.
Craig Inches of Royal London Asset Management says gilts view the government as stable.
Speculation grows that Rachel Reeves may raise taxes to cover a £50 billion deficit, potentially lowering rates.
Riddell warns a drop in sterling would signal a market crisis, with the pound around $1.34.