Global Daily: A careful cut

As expected, the Bank of England lowered its benchmark rate yesterday, from 4.25% to 4%. It was a close, and somewhat hawkish, call, however, as 4 out of the 9 board members voted to keep the rate on hold. We have long held the view that the BoE will cut its rate to 3.75% this year, with another cut pencilled in for November. Despite higher uncertainty, particularly over the timing of cuts, this remains our base case. Meanwhile Europe is still anxiously waiting for the US to do its part for the joint statement and for the agreement on car tariffs to be implemented. In a post on Truth Social, President Trump announced that he has nominated ally Stephen Miran to temporarily fill the vacant position in the Federal Reserve Board.