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Analysts: The room for the Bank of England to cut interest rates is much smaller than the market currently expects.
Jin10 data reported on May 8, London Schroders Senior Economist George Brown stated: "Today's interest rate decision is not surprising to anyone. However, looking ahead, the space for the Bank of England to cut rates is far smaller than the market currently expects. The fundamental issue for the UK is that it continues to face considerable capacity constraints. Therefore, due to disappointing productivity and unstable wage growth, inflation seems likely to rise again later this year. In our view, the Bank of England will only reduce the interest rate to around 4% in this round of rate-cutting cycle."