Bank of England Set to Keep UK Rates on Hold at 4%
The Bank of England's Monetary Policy Committee is split on whether to cut interest rates amid falling food inflation and steady CPI at 3.8%, with some experts favoring a 25 basis points cut.
- On Thursday, the Bank of England's Monetary Policy Committee will decide interest rates, with UK rates widely expected to be kept at 4%.
- Official figures show CPI at 3.8% in September as food inflation fell back, running half a percentage point below official forecasts.
- Most economists say the nine-person committee will be split as the Bank is visibly divided on how problematic inflation really is.
- Some experts predict a rate cut to 3.75% as banking giants Barclays and Goldman Sachs see recent data signaling a need to reduce borrowing costs, and Jack Meaning said it could tip policymakers on Thursday.
- The Bank is waiting on the Budget on November 26 before acting, and many economists expect borrowing costs to hold as inflation cools, with James Smith saying inflation has almost certainly peaked.
23 Articles
23 Articles
Divided Bank of England holds key interest rate at 4% despite hopes inflation has peaked
The Bank of England has kept its main interest rate unchanged at 4% as inflation in the U.K. remains markedly above target and policymakers await this month’s budget from the U.K. government, which could be one of the most consequential in years
Bank of England says it expects inflation has peaked as it holds inter
The Bank of England has voted to leave interest rates on hold at 4%, but a knife-edge split on its Monetary Policy Committee suggests a cut may be coming very soon. The nine members of the Bank’s MPC voted 5-4 in favour of leaving borrowing costs unchanged, in the face of higher-than-usual inflation in recent months. Money blog: Good news for mortgage holders could be on way The Bank’s chief mandate is to keep inflation – the rate at which price…
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