TD Securities: Bank of England to Cut Rates by 25 bps, Pound to Remain Weak

TD Securities stated that the Bank of England (BoE) will cut interest rates by 25 basis points in November, calling it a "close call," and expects the decision to pass with a 5-4 vote.

Simultaneously, policymakers may cite persistently high inflation as a reason to indicate a more cautious approach towards further easing than previously anticipated. Data released in the coming months will be crucial for determining the timing of additional rate cuts.

Regarding the British pound, the institution warned that whether the BoE acts this time or delays action until later this year, the pound is likely to remain under pressure. TD Securities expects the euro to rise further against the pound, and the pound to face continued downside risks against the US dollar.