Bank of England holds interest rates at 4.25%

Three members voted to reduce Bank Rate by 0.25%, to 4%. The Bank of England’s Monetary Policy Committee has voted 6-3 to maintain Bank Rate at 4.25%. Three members preferred to reduce Bank Rate by 0.25%, to 4%, more than predicted by industry experts who had largely expected a 7-2 split. The decision was widely expected following yesterday’s inflation figures which …

Bank of England cuts interest rates – experts share views on what it means for advisers and clients

The Bank of England has taken another step toward easing, cutting the base rate from 4.5% to 4.25% in a widely anticipated but cautious move. There was however a split in the voting so it wasn’t unanimous. With inflation easing—coming in at 2.6% in the year to March—markets had priced in a cut, though the Bank’s measured 25bp shift suggests policymakers remain …

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 …

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 …