After a long stretch of economic unease, UK inflation has continued its downward trajectory, with the Consumer Prices Index (CPI) falling to 2.6% in the year to March, according to the latest inflation figures from the Office for National Statistics (ONS). This marks the second consecutive monthly decline and comes in lower than market expectations — a welcome development for households and …
Bank of England halts interest rate cuts amid ongoing inflation
As priced in by markets The Bank of England’s (BoE) Monetary Policy Committee (MPC) opted to keep interest rates unchanged at 4.5% in its second meeting of the year. Eight MPC members voted in favour holding the interest rate steady, while Swati Dhingra wanted to reduce the rate by another 0.25 percentage points. Last month, the MPC implemented a quarter …
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 …
Bank of England slashes interest rates by 25bps to lowest level in 18 months
First MPC meeting of the year The Bank of England’s (BoE) Monetary Policy Committee has cut interest rates by a quarter point, from 4.75% to 4.5%. Seven MPC members voted in favour of the interest rate cut, while two preferred a 50bps snip. The Bank argued that over the past two years, there has been a “substantial progress on disinflation …
HL, Quilter and AJ Bell CEOs urge Reeves to reconsider IHT on pensions
The chancellor, Rachel Reeves, announced at the Budget last October that some pensions will be liable to inheritance tax upon death from April 2027. The CEOs of four of the UK’s biggest providers have written to the chancellor urging her to rethink the government’s ‘flawed and damaging’ policy of levying inheritance tax (IHT) on pensions from 2027, Citywire New Model …
UK inflation lowers to 2.5% in December
Down from 2.6% in November The UK Consumer Prices Index (CPI) dropped to 2.5% in December, below FactSet’s consensus of 2.8% for the month. According to data from the Office for National Statistics today (15 January), the downward trend was driven by restaurants and hotels, with the latter recording a 1.9% decline in prices over the month, as opposed to …