By August Graham, PA Business Reporter & Lawrence Matheson The Bank of England is likely to start reducing interest rates in June, economists are predicting. This comes after the Bank sent out its most dovish signals in years on Thursday, leading markets to increase their bets. Markets now expect interest rates to be set at around 5% in the June meeting, and to fall further in subsequent meetings, reaching about 4.5% by the end of the year. However, economists are divided over whether the first rate cut will happen in June or August. James Smith, ING’s developed markets economist, believes tha…