Bank of England is expected to signal interest rate cuts could happen soon after inflation falls | KLRT [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.

A cut would be a huge surprise, as it was when the Swiss National Bank decided Thursday to lower its main interest rate by a quarter of a percentage point to 1.50%.

Central banks around the world raised interest rates aggressively in late 2021 from near zero to counter price rises first …