Will the UK Inflation Stay Higher for Longer?

Will the UK inflation stay higher for longer?

UK inflation has remained above target, driven by persistent wage pressures, post-Brexit trade costs, and cautious monetary policy. As a result, the Bank of England (BoE) has maintained higher interest rates through 2025. Yesterday, the BoE has once again chose a cautious path, holding the interest rate at 4 per cent. The decision reflects the MPC’s view that, although inflation has peaked, further evidence is needed to confirm a sustained retur…

Will the UK inflation stay higher for longer? - British Chambers of Commerce

UK inflation has remained above target, driven by persistent wage pressures, post-Brexit trade costs, and cautious monetary policy. As a result, the Bank of England (BoE) has maintained higher interest rates through 2025. Yesterday, the BoE has once again chose a cautious path, holding the interest rate at 4%. The decision reflects the MPC’s view that, although inflation has peaked, further evidence is needed to confirm a sustained return to the…

Bank keeps rates on hold but thinks inflation has peaked

It was a case of some good and some bad for sterling yesterday. The Bank of England narrowly voted to keep interest rates unchanged at 4%, although in a positive sign for borrowers, Governor Andrew Bailey stressed that he believed inflation would come down alongside wage growth.