Bank of England decision to cut interest rates could be ‘closer call’

Andrew Bailey could make the final call on interest rates in December.

The Bank of England’s expected decision to cut interest rates by 25 basis points could be a “closer call” than markets predict, analysts have said.

Markets have all but priced in interest rates falling to 3.75 per cent at the Bank’s next decision in mid-December after a flurry of data points pointed to a continued decline in inflation levels.

But economists at Oxford Economics have warned that the Monetary Policy Committee (MPC)’s decision could be tighter than analysts assume given splits in opinions among policymakers.

Economists Andrew Goodwin and Edward Allenby suggested that there will be a “closer call” given recent surveys have pointed to higher inflation expectations trends than some hawkish members on the