Traders Bet BOE's Caution on Rates Will Give Way Soon.

The Bank of England is expected to maintain its cautious approach to interest rate cuts despite growing pressure from investors for more aggressive action. While Governor Andrew Bailey and his colleagues are predicted to hold off on another rate cut this week, money managers at Abrdn Investment Management, Aviva Investors, and Allianz Global Investors are betting that the bank's caution will not last long in the face of slower economic growth and a tax-raising budget. However, policymakers are unlikely to change their tone, even in the aftermath of expected rate cuts by the US Federal Reserve and the European Central Bank. The current consensus view is that the Bank of England will move more slowly than its counterparts, leaving borrowing costs elevated compared to other countries. [Extracted from the article]