US EditionBank of England holds interest rates at 4% ahead of make-or-break budget
- On Thursday, the Bank of England kept its key Bank Rate unchanged at 4% in a narrowly split 5-4 vote by the nine-member MPC before the Autumn Budget.
- With inflation at 3.8%, policymakers await the Autumn Budget on Nov. 26 as Chancellor Rachel Reeves is expected to announce tax rises to close a $20-$65.2 billion fiscal gap.
- Economists note that investors price roughly a 60% chance of a rate cut next month, with Bailey saying `we need to be sure inflation is on track` before cutting rates again.
- Mortgage holders face limited short-term changes as around four in five are on fixed-rate mortgages, with lenders trimming rates and savers urged to lock competitive deals.
- The Bank of England forecast inflation above 2% until the second quarter of 2027, UBS expects a cut signal by February, and some analysts project two 25bp cuts to 3.50% next year.
68 Articles
68 Articles
The AEX is facing a slight headwind in early afternoon trading on Thursday following the unchanged UK interest rate decision. ArcelorMittal is still attracting strong buyer interest following its optimism about its earnings for the coming year. IMCD is taking a significant hit following the trading update. In the Midkap, Air France KLM is plummeting after the poorly received figures. Pharming is the star performer following its increased revenue…
Bank of England says inflation has ‘peaked’ as interest rates kept at 4%
Members of the nine-strong committee pointed to a ‘gradual’ easing of rates in the longer term. The Bank of England has held interest rates at 4% despite policymakers stating they believe inflation has “peaked”. In a tight vote, the central bank’s Monetary Policy Committee (MPC) opted to keep the rate the same for the second consecutive time in its final meeting before the autumn Budget. Members of the nine-strong committee voted five to four in…
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