BoE 25bps cut 'nailed on' but analysts warn labour market 'cracks are beginning to show'

Larger rate cut deemed unlikely

While financial markets have already priced in the likely prospect of a 25-basis point cut to the Bank of England rate today (8 May), analysts and economists warned that close attention must be paid to any comments from the BoE about its potential future rate-cutting path.

Rate setters on Threadneedle Street are poised reduce the current base rate from 4.5% to 4.25% in the BoE's first decision since US President Donald Trump's ‘Liberation Day'.  "A base rate cut looks nailed on but what will be most significant is the Bank's future guidance," said Jeff Brummette, chief investment officer at Oakglen Wealth.  UK labour market stagnates and shows 'no signs of breaking' In a faux Monetary Policy Committee (MPC) vote run by The Times, the shadow rate setters voted 6-3 in favour or trimming by the UK's base rate by a quarter of a percentage point.  This...