Commerzbank analyst Christopher Baltz wrote in a report to clients that although trade uncertainty is increasing, it looks like the Bank of England may take a gradual route of cutting interest rates. The Bank of England cut its key interest rate by 25 basis points on Thursday and indicated that tariffs and related uncertainties threaten future growth. The Bank of England maintains its forward-looking policy guidelines and promises to adopt a “gradual and prudent approach” to lift restrictions on UK economic activity. Baltz said this means that the central bank will continue to cut interest rates every quarter rather than every meeting, and that the margin will be 0.25 percentage points rather than a larger rate cut.

Commerzbank analyst Christopher Baltz wrote in a report to clients that although trade uncertainty is increasing, it looks like the Bank of England may take a gradual route of cutting interest rates. The Bank of England cut its key interest rate by 25 basis points on Thursday and indicated that tariffs and related uncertainties threaten future growth. The Bank of England maintains its forward-looking policy guidelines and promises to adopt a “gradual and prudent approach” to lift restrictions on UK economic activity. Baltz said this means that the central bank will continue to cut interest rates every quarter rather than every meeting, and that the margin will be 0.25 percentage points rather than a larger rate cut.