Deutsche Bank: The Bank of England Does Not Need to Accelerate Rate Cuts

According to ChainCatcher, Deutsche Bank economist Sanjay Raja stated that despite signs of easing in the UK labor market, the Bank of England still needs to remain cautious about policy easing. Data released on Thursday showed a decline in UK job vacancies, a rise in the unemployment rate, and a slowdown in wage growth.

Raja believes the unemployment rate will continue to rise slowly, which means the Bank of England can continue to cut interest rates, but should do so in a gradual and cautious manner. "We believe the conditions are not yet in place to accelerate the pace of rate cuts."