Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years Interest rates have been cut to 4% by the Bank of England (BoE) Monetary Policy Committee in a move that was forecasted. So far, the BoE has opted to cut rates twice this year (February and March) while holding at the last one in June. Now the 4% rate cut means that interest …

UK inflation unexpectedly rises to 3.6% for June

Increases from 3.4% in May UK inflation rose to 3.6% in June, according to data from the Office for National Statistics, up from 3.4% in May. This figure came in above expectations from economists polled by Reuters, who had forecast the UK Consumer Prices Index (CPI) would remain unchanged from last the previous month.  Month-on-month, alcohol and tobacco saw a significant …

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 …

UK inflation falls again

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 …