The Bank of England is likely to reduce interest rates in August and November, according to a report by AXA Investment Management's economist Gabriella Dickens. This prediction is based on the ongoing decline in UK inflation and labor market data. The UK's inflation rate is projected to remain at around 2% in June, as the anticipated reduction in the energy price cap will be smaller than the decrease last year.

Despite a possible slight increase in July, the inflation rate is expected to stay below 2.5% in the second half of the year. This is attributed to the continued downward trend in the core commodity consumer price index and a further decline in the food consumer price index inflation rate. The labor market data also indicates a slowdown, with a decrease in the number of vacancies and an increase in unemployment, although earnings growth remains strong.

The predicted interest rate cuts by the Bank of England are aimed at stimulating economic growth amidst the current slowdown. The bank's decision will be influenced by the latest inflation and labor market data, which will be closely monitored in the coming months. The potential rate cuts may have implications for borrowers and savers, as well as the overall economy.

The UK's inflation rate has been declining in recent months, with a slowdown in food price inflation and a decrease in housing and utilities costs. The core inflation rate, which excludes energy and food prices, has also eased, indicating a downward trend in underlying inflation. The labor market, while still robust, is showing signs of cooling, with a decrease in employment and an increase in unemployment.

The expected interest rate cuts by the Bank of England are a response to the current economic conditions, aiming to support growth and stability in the UK economy. The bank's decision will be crucial in shaping the country's economic trajectory in the coming months.