Wall Street to cut interest rates

Economists are predicting a possible 25 basis point rate cut from the Bank of England next week, although this decision may come down to a close vote. The rising mortgage rates have reportedly pushed an additional 320,000 individuals into poverty, highlighting the unequal impact of inflation on different households. In the U.S., the economy grew by 2.8% in the second quarter, leading traders to bet on a Federal Reserve rate cut as early as September, despite stronger-than-expected GDP data. Stocks rebounded, particularly outside of the tech sector, as Wall Street anticipates a broader market rally. However, mixed earnings reports from companies like Ford and American Airlines have raised concerns about profit growth amid rising costs. Overall, market sentiment remains cautiously optimistic, with significant expectations for interest rate cuts in both the U.S. and the UK by the fall.