Economist: The Bank of England needs wage data to slow down before cutting interest rates in August

ChainCatcher news, senior economist Luke Bartholomew from investment company Abrdn stated in a report that the Bank of England's interest rate decision in August appears to face significant challenges following the release of June's inflation data.

He mentioned that the Bank of England will almost certainly pay attention to dynamic factors such as the growth of hotel prices, but the continued rise in service sector inflation will concern the Bank of England about how long inflation can remain at the 2% target once the favorable base effects pass and domestic price pressures begin to push overall inflation higher again. Abrdn still expects a rate cut in August, but this requires Thursday's employment data to show a slowdown in wage growth.