Could The Bank of England Cut Interest Rates Next Month?

Could The Bank of England Cut Interest Rates Next Month? By Hardika Singh

The Bank of England bides its time, but maybe not for too much longer. Meanwhile, chief financial officers and other executives discuss the impact of higher-for-longer interest rates And programs to award whistleblowers are gaining momentum. Read on for this news and more.

Top News Bank of England Leaves Interest Rates Unchanged, Signals It's Closer to Cutting

The Bank of England kept its key interest rate unchanged at a 16-year high, but indicated that it is on course to cut rates over the coming months alongside its European peers, and possibly as early as June. The U.K.'s central bank on Thursday left its key rate at 5.25% for the sixth straight meeting of its policymakers, in line with what investors and economists had been expecting.

U.K. Returns to Growth as War Shock Fades U.S. Economy What CFOs Are Saying About Higher-for-Longer Rates

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Financial Regulation More Regulators Eye Whistleblower Award Programs Hoping for Insider Tips

More than a decade after a global financial crisis and the Bernie Madoff Ponzi scheme led to the establishment of two whistleblower award programs in the U.S., more U.S. regulators and other agencies worldwide are seeing the benefits of paying individuals for helpful information, signaling a change in momentum on the debate.

Forward Guidance Friday (all times ET)

2 a.m.: U.K. GDP for March and first quarter

2 a.m.: U.K. industrial production for March

8:30 a.m.: Canada labor force summary for April

10 a.m.: Philadelphia Fed Survey of Professional Forecasters

10 a.m.: University of Michigan consumer survey for May, preliminary

10:30 a.m.: Bank of Canada publishes Senior Loan Officer Survey

12:45 p.m.: Chicago Fed's Goolsbee speaks to the Economic Club of Minnesota

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

Geopolitics has moved to a central role in supply-chain planning as international confrontations roil trade and transportation. Once viewed as a near-total loss, FTX plans to fully repay its swindled customers as the defunct crypto exchange's assets have rebounded since its 2022 bankruptcy filing. Whistleblower programs seeking tips that lead to enforcement actions are gaining momentum in the U.S. and abroad. Listen to WeightWatchers CEO Sima Sistani discuss how her company plans to return to profitability as the rise of weight-control drugs challenges the diet and exercise program business model. Research April Inflation Expected to Keep Early Fed Cuts Unlikely

U.S. consumer price data due Wednesday is likely to show U.S. inflation moderated last month, but not enough to alter the path of monetary policy, Bank of America economists say in a note. They see core monthly CPI slowing to 0.28% from the 1Q average of 0.37%. While it would be "a noticeable moderation," it won't be enough to convince the Fed that inflation is falling toward the 2% target, BofA says. "A report in line with our expectations would not shift our thinking on Fed policy," which is an initial interest rate cut in December. But if inflation turns up hotter, it could lower the likelihood of a December cut, BofA says. - Paulo Trevisani

Basis Points U.S. companies are feeling good about their prospects and spending like they mean it. The first-quarter earnings season is turning out better than many Wall Street forecasters had expected. At the same time, companies are stepping up repurchases of their own shares, which is giving a resurgent stock market an extra boost. - Charley Grant The Bank of England may have to wait for more signs of easing in U.K. inflation and labor-market data before starting interest-rate cuts, Monex Europe analysts say in a note. "While the [BOE] is set to receive two more sets of labor market and inflation data between now and the June meeting, in our view the bar is still high for these to build sufficient confidence for the MPC to cut rates," they say. - Miriam Mukuru New Zealand's manufacturing sector showed tentative signs of recovery in April, despite the economy's lengthening recession, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index. James Glynn About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

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05-10-24 0715ET