Despite the fact that inflation has reached the bank's target of 2%, market participants expect interest rates to remain at 5.25%, and today will be accompanied only by a brief statement, rather than a full monetary policy report and press briefing.
So if interest rates do not change this week, there will be little guidance on when this is likely to happen.
At the last meeting, seven members of the MPC voted in favor of retention, while two voted in favor of reduction, and it is likely that more MPC members will now join the stream of reduction, but perhaps this will not be enough to force the decision.
The markets ' pricing of British interest rates also indicates that the first of August will be the most likely date for the Bank of England to make the first interest rate cut since 2020.
In addition to the incoming data on inflation, the labor market, retail sales, among others, there will be a special event on the occasion of the Bank of England's decision, which is the upcoming elections, it makes sense to wait until after the elections on the Fourth of July to decide on interest rates.
Opinion polls also suggest that a new government will take power by the time of the bank's next meeting in August, which will change the dynamics of the economic outlook with the development of new tax and spending plans.
