The Bank of England's decision on whether to raise interest rates is uncertain after a surprise drop in inflation. Prior to the August consumer price index reading, the market had predicted an 80% chance of a Rate Hike, but this dropped to over 57% after the annual headline CPI fell to 6.7% in August. Goldman Sachs now expects the Bank of England to keep rates unchanged. While some analysts believe there is a stronger chance of a pause, others still favor a 25 basis point increase. The Bank of England is trying to balance inflation and economic growth.

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