Economists expect close vote at next week39;s BoE meeting
Markets see 50 chance of a quarterpoint rate cut
Inflation back at 2 target but set to rise again
Wage growth and services prices still too high for BoE
Rate decision due at 1100 GMT on Aug. 1

LONDON, July 26 Reuters The Bank of England39;s first interest rate cut since 2020 hangs in the balance next week, with greater uncertainty than usual as key policymakers have not spoken publicly for more than two months due to rules in the runup to July 439;s election.

Investors are left guessing whether recent higherthanexpected services prices are enough to prevent the central bank cutting rates from their 16year high of 5.25.

Interest rate futures show a 50 chance of a quarterpoint rate cut on Aug. 1. And while most economists in a Reuters poll still expect a cut, many would not be too surprised if the BoE instead waited until its following meeting on Sept. 19.

We39;ve run out of ways to describe how close the decision next week will be, RBC Capital Markets global macro strategist Peter Schaffrik and senior UK economist Cathal Kennedy wrote in a note to clients on Thursday.

Last month, the BoE39;s Monetary Policy Committee voted 72 to keep rates on hold, but minutes of the decision recorded that it had been a finely balanced decision for some of the policymakers who had not voted for a cut.

Governor Andrew Bailey, in a written statement alongside June39;s decision, said policymakers need to be sure that…