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 …

The Bank of England holds rates at 4.75% as Budget adds inflation uncertainty

The MPC said there were ‘additional uncertainties’ caused by the Budget and further global political tensions. The Bank of England (BoE) has held the base rate at 4.75% in a widely expected move, with the Monetary Policy Committee (MPC) voting in a 6-3 majority. The decision to hold rates comes after twelve month CPI inflation increased to 2.6% in November, …

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 …

Below-expected inflation paves the way for two interest rate cuts this year

September marks the first-time inflation has been below the Bank of England’s 2% target since April 2021. CPI inflation has fallen from 2.2% in August to 1.7% in September, below the Bank of England’s 2% target and below economists’ forecasts of 1.9%. After hitting the Bank of England’s 2.0% target in May and June, inflation rose to 2.2% in July …