TD Securities: The Bank of England will cut interest rates by 25 basis points, and the British pound will remain weak.

TD Securities reports that the Bank of England is expected to cut interest rates by 25 basis points in November. This will be a “neck-and-neck decision,” with a projected 5-4 vote in favor of the rate cut. Meanwhile, policymakers may cite persistently high inflation as a reason to adopt a more cautious stance toward further easing than previously anticipated. Data released in the coming months will be crucial in determining the timing of any additional rate cuts. Regarding the British pound, the firm warns that whether the Bank of England takes action now or delays until later in the year, the pound could remain under pressure. TD Securities expects the euro to continue strengthening against the pound, while the pound may face ongoing downside risks against the dollar.