Bank of England to Cut Rates?

Although there was no UK economic data released yesterday, the market now believes that the Bank of England is on track to cut interest rates next month. In a testimony before legislators, King admitted that given current market conditions, the central bank is more predisposed to cutting interest rates even though they are in no hurry to follow in the footsteps of the Federal Reserve who has taken historic measures in an attempt to stabilize the credit markets. Bank of England member Sentence also reminded the markets about the difficult times ahead for the UK economy. He argues that although concerns for a recession are overstated, consumer spending should continue to weaken.