Market turmoil may force the Central Bank of the UK to cut interest rates cautiously

On January 10th, Jinshi data reported that this week, the turmoil in the British market has become the focus of attention for people to follow the Labour government, but economists say that the Central Bank of Britain will also have to slow down its rate cuts to deal with this situation. Although it is expected that the Bank of England will not intervene in market fluctuations, it may have to show a new commitment to dealing with inflation - although there are signs of a rise in unemployment and a stagnation in economic growth. Nora Szentivanyi, a global economist at JPMorgan, said, "For the Central Bank, it will become increasingly difficult to have confidence in further interest rate cuts to the extent previously expected by the market." "At present, the Central Bank has much less room to maneuver, especially if there is no further fiscal consolidation." Since the beginning of this year, British bond yields have soared and the pound has fallen, as weak economic growth and renewed concerns about stagflation have driven investors to dump British assets, fearing that inflation has not been brought under control and that government plans to boost GDP will not put British bonds on a sustainable path.