1306 GMT - The Bank of England should continue to cut interest rates gradually given the government's limited scope to support the economy via fiscal measures, UBS Global Wealth Management economist Dean Turner says in a note. U.K. Treasury chief Rachel Reeves looks set to announce spending cuts in her Spring Statement on March 26 and this could weigh on the economy, he says. "Unlike Germany, where the dramatic shift in fiscal policy has brightened the economic outlook, the U.K. has limited capacity to increase spending without abandoning its self-imposed fiscal rules." The BOE should cut rates in May followed by two more reductions later this year, he says. The BOE voted 8-1 to leave rates at 4.50% on Thursday.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

March 20, 2025 09:06 ET (13:06 GMT)

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