Bank of England policymakers have voted to leave interest rates at 4%, as Rachel Reeves prepares for her make-or-break budget just under three weeks away.
The Bank’s nine-member monetary policy committee (MPC) announced that they had decided to leave interest rates unchanged for the second meeting in a row, in line with City forecasts of a hold.
Borrowing costs have been cut five times since Labour came to power last July, with the last reduction made in August. Meanwhile, inflation is running at 3.8% – nearly twice the Bank’s 2% target.
In her 26 November statement, the chancellor i…
Bank of England policymakers have voted to leave interest rates at 4%, as Rachel Reeves prepares for her make-or-break budget just under three weeks away.
The Bank’s nine-member monetary policy committee (MPC) announced that they had decided to leave interest rates unchanged for the second meeting in a row, in line with City forecasts of a hold.
Borrowing costs have been cut five times since Labour came to power last July, with the last reduction made in August. Meanwhile, inflation is running at 3.8% – nearly twice the Bank’s 2% target.
In her 26 November statement, the chancellor is expected to increase taxes, potentially slowing the economy, and take action against the rising cost of living.
Reeves said in a speech on Tuesday: “The choices I make in the budget this month will be focused on getting inflation falling and creating the conditions for interest rate cuts to support economic growth and improve the cost of living.”
With another meeting due in December, the MPC has opted to await full details before reacting, however.
The International Monetary Fund (IMF) recently predicted that consumers in the UK will suffer the highest rates of inflation of any G7 country this year and next.
skip past newsletter promotion
after newsletter promotion
More details soon …