The Bank of England maintained its key interest rate at a 16-year high of 5.25% on Thursday while indicating that rate cuts could come as soon as June.

The bank also reported that inflation in the UK had fallen to its lowest level since September 2021, from a peak of 11% in 2022 to 3.2% in March.

It forecast that inflation is expected to fall below its target rate quickly. Like the United States, the Bank of England seeks an inflation rate of 2%.

British regulators said on Thursday that higher interest rates are reducing inflation but while progress is encouraging, they are not yet at the point of cutting rates.

But they hinted cuts could come as soon as June 20, when they reconsider rates.

As inflation rates fall worldwide, it is expected to ease pressure on the U.S. economy and could lead to rate cuts in the states.

Wall Street had expected rate cuts to already begin in the U.S. but stubbornly high inflation rates have delayed them and cut the number of cuts expected this year.

Some analysts had predicted that there is a chance that there would be no rate cuts in the U.S. before the presidential election.

The economy has been a major issue for many voters who have been polled.

Donald Trump gets much higher approval ratings on the economy than President Joe Biden.

The Bank of England, like the U.S. Federal Reserve, raised interest rates aggressively in late 2021 after supply chain issues during the coronavirus pandemic caused sharp price increases.

Huge financial aid packages during the pandemic, including direct checks sent to millions of Americans, also is blamed for the higher inflation rates.