Rate cuts 'a coin toss' as divided Bank of England weighs up next monetary policy move

MPC meeting 1 August

Despite two months of sedentary headline inflation perched at 2%, stickier than anticipated services inflation has left Monetary Policy Committee members split on whether the Bank of England should move ahead with a rate cut on Thursday (1 August).

June saw UK inflation dip to BoE's 2% target for the first time in three years, but high levels of services inflation at 5.7% and core inflation hitting the 3.5% mark dashed any hope of the bank rate being trimmed in June.  This data from the Office for National Statistics showed that headline inflation in the UK currently sits below the levels across the Atlantic and in the Eurozone. James McManus, CIO at Nutmeg, said the fall to target represented a "milestone moment", high wage growth and stickiness in domestic price pressures could mean "an August rate cut could well be off the ta...