LONDON, Aug 1 Reuters Big investors are growing more confident about a comeback for neglected UK assets, with the Bank of England39;s move to cut interest rates from a 16year high burnishing the feelgood factor from the new British government39;s landslide election win.

The BoE cut rates by a quarter point to 5.0 on Thursday, in a decision markets had thought was on a knifeedge.

The result, money managers said, signaled Britain39;s battle with weak growth and high inflation might be coming to an end just as an era of political turmoil and uncertainty was also potentially over.

Shaken for years by Brexit, successive leadership changes under the former Conservative government and by exPrime Minister Liz Truss39; disastrous 2022 miniBudget, UK stocks are weakly valued and government bonds are trailing U.S. peers.

But while the BoE39;s policymakers voted 54 for a cut, showing deep division over whether inflation has been tamed, they also cheered investors by raising their economic growth projections.

The unusual combination of a rate cut and an upgraded growth forecast should be a clear positive for markets, Principal Asset Management chief global strategist Seema Shah said.

The UK today has fiscal policy that looks much more normal than in periods of crisis during the recent past and the macro economic backdrop looks better given growth is picking up, Lombard Odier macro strategist Bill Papadakis said.

This development in monetary policy is really the cherry on the…