Inflation rises to 3% in January

The higher-than-expected rise adds to the Bank’s challenges when considering interest rates. UK consumer prices index (CPI) inflation rose to 3% in January, an above-expectation increase that adds to the Bank of England’s challenges in managing monetary policy.  According to the Office for National Statistics, rising petrol and food costs drove inflation. Private schools passing on VAT bills to parents …

UK inflation jumps to eight-month high of 2.6%

The rise means it is unlikely the Bank of England will cut rates later this week, analysts say. UK inflation jumped to 2.6% in November, its highest level in eight months. The rise in the Consumer Price Index, from 2.3% in the previous month, was due to higher petrol and clothing prices, according to the Office for National Statistics (ONS). …

Inflation rises to 2.3% as energy bills grow

Jump in bills drives slight increase in CPI growth in October, with Bank likely to stick to cautious approach to rate cuts. UK inflation rose slightly more than expected to 2.3% in October on the back of a jump in energy prices.  Consumer Price Index (CPI) growth had slowed to 1.7% the previous month, raising some hopes of quicker than …

Bank of England reduces interest rates to 4.75%

Industry experts predict further reductions in the months ahead but say the Budget may slow the pace of future cuts. The Bank of England’s Monetary Policy Committee has voted 8–1 to reduce Bank Rate from 5% to 4.75%. One member preferred to maintain Bank Rate at 5%. The MPC last reduced interest rates from 5.25% to 5% in August, the …

Bank of England cuts interest rates to 5%

The Bank’s Monetary Policy Committee has reduced rates for the first time since 2020. The Bank of England’s Monetary Policy Committee has voted 5-4 to reduce Bank Rate to 5% – the first reduction since the early days of the Covid-19 pandemic in March 2020. Four members preferred to maintain Bank Rate at 5.25%. This month marks a full year …

Bank of England’s MPC holds interest rates in 7-2 vote

The Bank’s Monetary Policy Committee has held rates for a seventh consecutive time. The Bank of England’s Monetary Policy Committee has voted 7-2 to maintain Bank Rate at 5.25%, despite inflation falling to the Bank’s 2% target. Two members preferred to reduce Bank Rate by 0.25%, the same as the previous month. The Committee noted that CPI inflation is expected …