The latest policy statement from the Bank of England has sparked widespread follow in the market. While the Central Bank reiterated its "gradual and cautious" approach to interest rate adjustments, it also hinted that the current rate-cutting cycle may be nearing its end. This subtle shift in stance is reflected in its wording, which no longer explicitly states that the current policy remains restrictive, but instead points out that "as interest rates are lowered, the restrictiveness of monetary policy has decreased."

This potential policy shift is undoubtedly a challenge for the UK government, especially in the context of its commitment to stimulating economic growth. However, Central Bank Governor Bailey emphasized that the latest interest rate cut decision was the result of careful consideration, although he believes there is still room for further rate cuts.

It is worth noting that the decision-making process of the Bank of England is not smooth sailing. Among the nine decision-makers, four tend to keep the interest rate unchanged due to concerns about inflation. This divergence even led to the unprecedented two rounds of voting by the Central Bank. Ultimately, Bailey and four other members supported lowering the benchmark interest rate from 4.25% to 4%, while four members, including Deputy Governor Lambardi of monetary policy, advocated for keeping the interest rate unchanged.

The challenges facing the Bank of England are multifaceted. On one hand, inflation is expected to soon reach twice the Central Bank's target of 2%; on the other hand, the continuing deterioration of the labor market has also raised concerns among policymakers. This complex economic environment requires the Central Bank to find a balance between controlling inflation and stimulating the economy.

Overall, the latest policy signals from the Bank of England reflect its cautious stance in the face of the current economic situation. While the rate-cutting process may soon come to an end, the Central Bank still emphasizes that there is no preset interest rate path, indicating that it will continue to flexibly adjust policies based on economic data. This cautious attitude will undoubtedly have a profound impact on the future economic direction of the UK.