David Pokima
The Bank of England (BoE) will make the much-anticipated rate decision today with several policy watchers leaning towards a cut. However, this remains dicey amid macro factors like service inflation among others. An interest rate could serve as an added boost for crypto and other risky assets.
Market Awaits Bank of England Decision
The Bank of England is in the middle of a rate cut dilemma sprung by macro factors. Proponents for a cut await the first move in four years while stressing that if the BoE doesn’t act now, a September date will be more difficult. With inflation down to 2%, several market participants expect the decision today. However, a major clog in the wheel is the services inflation data which came in at 5.7%. This was hotter than expected coupled with rebounding growth in recent months.
According to Bloomberg, economists reckon a tight 5:4 split votes today as participants brace for the next policy direction. The Monetary Policy Committee members seem divided in views with hawkish Catherine Mann likely to be against a rate cut while Swati Dhingra might back the move.
Andrew Bailey, Governor of the Bank of England has previously hinted at a policy direction on the way to rate cuts but skepticism trails whether it would come in August or delayed till September. If rates are slashed, homeowners point to lower mortgage payments as well as rent. On the flip side, savers are getting more with the status quo.
Also Read: Altcoin Whales Prepare for Rally After September Fed Rate Cut
Impacts on Bitcoin and Crypto Markets
Bitcoin commentators look towards interest rate cuts to drive investment in the market. Higher interest rates will see investors move funds out of risky assets to reposition their portfolios. As the crypto market decides slight losses, stakeholders tip lowered interest rates to usher in the next market drive. This is coupled with the approval and inflow recorded by crypto ETFs. The United States Federal Reserve left interest rates unchanged as the Feds wait for more movements to 2% inflation.
Also Read: Ethereum ETF Outflows Top $77M After FOMC Meeting, What’s Next?
David Pokima
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
