In a widely expected move, the Bank of England today (18 September) held interest rates at 4% in its September meeting, with the Monetary Policy Committee (MPC) voting 7-2 to maintain the rate. “For now, the weaker jobs market is not enough to force a rate cut and stimulate the economy,” she said. Indeed, markets are now not fully pricing the next rate cut until the end of April next year.”James said: “Whether or not the UK economy can wait until April before the next rate cut remains to be seen. “The Bank seems confident QT is not having a big effect on the present state of the gilt market, which does look to be highly correlated with overseas developments. This has closely tracked downward movement in yields in long-dated US Treasury bonds, as investors have digested a weaker US labour market and an interest rate cut from the Fed.”