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rate cuts are very likely imo in the UK (where im from). poor people with mortgages need it, economy needs it, and inflation is bang on the target at the moment so seems likely next month or in 2 months time.
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The BoE has no responsibility for poor people with mortgages. It is only concern is with inflation. As all the inflationary pressures are on the up side dont count on a cut in the next two months, indeed a cut is not priced into swap markets.
The reason the pound is about to drop is that the whole UK miracle economy is a fraud. As soon as the imminent house price crash sets in due to the massively increased criteria banks are asking for for mortgages, this will be revealed.
To be clear the UK is not in a housing bubble, it is in a credit bubble (1.6£ trillion public debt) and has the highest level of indebtedness in the developed world. HPI has been a direct result of the record debt as there is more money chasing fewer houses. Now that the credit crunch has set in to the UK economy the conditions for HPI do not exist and a housing crash is imminent in the next 6-12 months.
Basically when examined there are no fundamentals to the British economy. Yes indexes are good, but that is all down to the credit bubble. Once that bubble pops bye bye sterling.
Good peice on British Economy.