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Bank 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.
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The Bank of England did not decide to change its key interest rate at its meeting today, leaving it at four percent.
Four members of the monetary policy committee preferred a reduction in interest rates of 0.25 percentage points for 3.75%
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Total News Sources84
Leaning Left7Leaning Right6Center27Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 18%
C 67%
15%
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