The Bank of England (BoE) Monetary Policy Committee (MPC) implemented a 25 basis points interest rate cut, which was characterized as hawkish given the finely balanced vote and a rare recast of the vote. Initially, MPC member Michael Saunders voted for a 50 basis points cut but later adjusted his vote to 25 basis points, highlighting the committee's cautious stance amid labor market weaknesses and inflation concerns. The vote split was five in favor of the 25 basis points cut, fewer than the seven cuts forecasted by analysts, with two members preferring no change. The BoE indicated that the timing and pace of future rate cuts will depend on the extent of disinflation in the economy. Market participants have adjusted their expectations accordingly, reducing the anticipated easing to about 17-20 basis points for the remainder of the year, down from earlier forecasts of around 27 basis points. The decision has pushed traders to price in the next 25 basis points cut not before March 2026. Additionally, the BoE signaled concerns about the potential impact of quantitative tightening (QT), suggesting a possible slowdown in the pace of monetary easing going forward.