Ketuo Macro: The Bank of England's decision to hold steady is because the mindset has not yet changed

The September 19th data from Jinshi, Kai Tuo macroeconomist Paul Dales said in a report that the Bank of England’s decision to maintain the Intrerest Rate indicates that it is more gradually lowering interest rates than the Federal Reserve. He said it makes sense that the Bank of England’s decision contrasts sharply with the Federal Reserve’s 50 basis point rate cut on Wednesday, as the Bank of England has not yet shifted from reducing concerns about inflation to more concerns about weak economic activity. The UK’s core inflation rate in August was 3.6%, while the core inflation rate for personal consumption expenditures, favored by the Federal Reserve, was 2.6% in July. Dales said this is reflected in the new wording of the policy statement, that ‘gradually removing policy restrictions is still appropriate in the absence of substantial progress’.