Bank of England is expected to signal interest rate cuts could happen soon after inflation falls Boston 25 News [Video]

LONDON — (AP) — The Bank of England is widely expected to indicate Thursday that interest rates could be cut in the coming months following news that inflation across the U.K. is falling faster than expected.

The central bank, which sets monetary policy for the U.K., is expected to keep its main interest rate unchanged at a 16-year high of 5.25%, as it has since August.

But like the U.S. Federal Reserve, which also kept rates on hold Wednesday, the Bank of England is expected to show that it is inching toward cutting borrowing costs as price rises ease.

Central banks around the world raised interest rates aggressively in late 2021 from near zero to counter price rises first stoked by supply chain issues during the coronavirus pandemic and then by Russia’s invasion of Ukraine, which pushed up food and energy costs.

Higher interest rates — which cool the economy by making it more expensive to borrow, thereby bearing down on spending …