Economists are split over whether the Bank’s policymakers will decide it is the right time to reduce rates on Thursday. (PA Graphics)Sanjay Raja, senior economist for Deutsche Bank, also predicted that rates will be cut to 5% but stressed it will be a “delicate balance”. “With the bank rate held steady for the better part of a year now, risk management considerations may be shifting from having done ‘too little’ to ‘too much’,” he said. The economist expects governor Andrew Bailey to be among the members on the Monetary Policy Committee (MPC) opting for a rate cut. This is partly because financial markets are leaning towards a September cut, and the Bank may want to avoid “surprising” investors.
