Paul Dales, chief British economist at KITU Macro, said that UK inflation should rebound in the next few months, which may cause the Bank of England to postpone interest rate cuts in December after the expected November rate cut. He said that the CPI rose 1.7% year on year in September, lower than expected, the lowest level since April 2021, but changes in the energy price cap and other base effects should cause the index to rise again in the next few months. Although it is almost certain that interest rates will be cut again next month, the Bank of England's interest rate makers may reverse their decision to cut interest rates in December. Dales said, “We think the Bank of England is more likely to insist on cutting interest rates by 25 basis points every other meeting.”

Paul Dales, chief British economist at KITU Macro, said that UK inflation should rebound in the next few months, which may cause the Bank of England to postpone interest rate cuts in December after the expected November rate cut. He said that the CPI rose 1.7% year on year in September, lower than expected, the lowest level since April 2021, but changes in the energy price cap and other base effects should cause the index to rise again in the next few months. Although it is almost certain that interest rates will be cut again next month, the Bank of England's interest rate makers may reverse their decision to cut interest rates in December. Dales said, “We think the Bank of England is more likely to insist on cutting interest rates by 25 basis points every other meeting.”