There are still several hundred thousand mortgage payers who were on fixed rate deals that predated the tightening cycle that the Bank of England began two years ago. The effect of this is that there is a constant flow of families who are still seeing their monthly outgoings rise considerably, even though the Bank has now, to all intents and purposes, ended that cycle.This is one reason changes in monetary policy take an inordinate amount of time to work their way through the entire economy, and as such means that rates will be having their least effect on the economy when the bank begins to lower them.Most predictions are now that the first rate cut will take place around the middle of the second quarter of next year. Over the past few weeks, that date has been brought forward. Only a month ago, Huw Pill was agreeing with the market's view that the first cut would be made in the third quarter.It is odd to note that the Bank of England Governor’s impression of the economy is significantly worse than that of the Government and to a large extent, the market, yet he doesn’t see the merit in lowering interest rates, even though inflation is now firmly on a downward path.Given the lag mentioned above, even if rates were cut today, it would be several months before their full effect on demand is seen.Beyond Currency Market Commentary:Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.