On August 1 the Bank of England announced that it was cutting interest rates by 25 basis points to 5.00%, the BoE said that five members of the Monetary Policy Committee (MPC) voted in favor of the rate cut, while four voted in favor of keeping rates unchanged. This is the first rate cut by the BoE since March 2020 and is in line with market expectations. Following the BoE's rate cut announcement, the market focus shifted to the BoE's next rate cut, with traders increasing their bets on a BoE rate cut, which is expected to be another 35 basis points in 2024. The money market expects the probability of the BoE cutting rates by 25 basis points in September to be around 50%. Currently, there is a strong case for the BoE to implement a rate cut, with UK CPI growth having fallen back from a peak of 11% in 2022 to near the BoE's policy target, which is at the lower end of the range of the world's major developed economies.2024 In May-June, UK inflation stabilized for two consecutive months at the BoE's annualized target of 2%.