{"id":114756,"title":"The Bank of England might reduce interest rates “as early as this month.”","publisher":"Share Talk","author":"sharetalk","published":"2024-06-05T13:17:54+00:00","modified":"2024-06-05T13:17:54+00:00","canonical_url":"https://www.share-talk.com/the-bank-of-england-might-reduce-interest-rates-as-early-as-this-month/","markdown_url":"https://www.share-talk.com/the-bank-of-england-might-reduce-interest-rates-as-early-as-this-month.md","json_url":"https://www.share-talk.com/the-bank-of-england-might-reduce-interest-rates-as-early-as-this-month.json","category":"B2B","categories":["B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["BANK","Bank of England","banking","BARC","Barclays","Benchmark","BoE","buyback","Chancellor","childcare","CME Group","consumers","Coverage","CS Venkatakrishnan","domestic","energy bill","England","FCA","Fed","Federal Deposit Insurance Corporation","Federal Reserve","FREE","FTSE 100","FTSE 250","FTSE100","futures","Goldman Sachs","household","HSBC","HSBC Holdings","Inflation","investors","Jeremy Hunt","Legal & General","lending","Lloyds Banking Group","London","midcap index","NatWest Group","Ofgem","pandemic","price cap","Prime Minister","program","Prudential","Qatar","Regulators","Rishi Sunak","SEC","Serious Fraud Office","share","Share Talk","ShareHolders","silicon valley","Silicon Valley Bank","SIVB","SVB","The Bank of England","Traders","Treasury","UK","Underground","USA","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/bank-of-england-nov-23.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"The Bank of England might cut interest rates “as soon as this month” due to declining costs in the services sector, according to a closely monitored survey.\n\nThe S&P Global UK services PMI revealed that input cost inflation for British services companies grew at its slowest pace since February 2021.\n\nLast month, activity in the UK’s services sector expanded at a slower rate, with easing new business orders bringing the reading down to 52.9 in May from 55 in April, which was above economists’ estimates.\n\nJoe Hayes, principal economist at S&P Global, noted, “Of particular interest to the immediate outlook for the UK economy will be the price measures, with the Bank of England potentially moving to cut interest rates as soon as this month.”\n\n“The PMI surveys show prices for UK services rising at the slowest pace for over three years. For three consecutive months now, selling price inflation in the service sector has eased – a very encouraging sign for the Monetary Policy Committee, suggesting that services prices are moving in the right direction.”\n\nThomas Pugh, economist at RSM UK, added, “The takeaway from this is that April’s sticky services inflation was probably a direct response to the increase in the minimum wage, rather than a reflection of underlying price pressures. Services inflation should slow over the next few months, setting the stage for the Bank of England to cut interest rates this summer.”"}