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Monetary policy committee

  • UBS creates AI tool to monitor interest rate cuts  

    May 21, 2025

    UBS has created an AI model that takes a view on central bank’s hawks and doves when interest rates are set in a bid to cut through the noise of hard-to-read press conferences.  In a new policy paper spanning 38 pages, the Swiss bank revealed that its new tool is adept at “measuring the tone [...]

  • Interest rate cuts need to slow down to curb inflation, says Huw Pill 

    May 20, 2025

    Interest rate cuts are fuelling inflation and need to slow down, the Bank of England’s chief economist Huw Pill has warned ahead of the release of fresh data set to show a jump in price growth in April.  The Bank‘s Monetary Policy Committee (MPC) voted by a slim majority to cut interest rates to 4.25 [...]

  • Interest rates may stay higher for longer says Bank of England

    May 12, 2025

    Several members on the Bank of England’s Monetary Policy Committee have warned that sticky inflation could stall further interest rate cuts this year in marked contrast to current analyst expectations.  Bank policymakers voted to lower interest rates to 4.25 per cent last week. Two MPC members voted for a 50 basis point cut, and another couple [...]

  • Interest rate cut hopes fade after Bank of England decision

    May 8, 2025

    City investors have lowered expectations of multiple interest rate cuts later in the year after the Bank of England decided to reduce rates to 4.25 per cent.  Prior to the Bank’s decision on Thursday at 12.02 pm, markets priced in around three more cuts this year in predictions that would take interest rates to 3.5 [...]

  • Bank of England to delay interest rates decision – by two minutes

    May 6, 2025

    The Bank of England will delay the release of its latest decision on interest rates this Thursday – by two minutes.  The highly unusual change was made to accommodate a two-minute silence to commemorate Victory in Europe Day this week.  It means Brits will only be informed about the Monetary Policy Committee (MPC)’s decision to [...]

  • When words matter more than numbers at the Bank of England

    May 5, 2025

    City analysts have pencilled in their predictions for Thursday. Here’s how almost all of them likely read. Interest rates will be cut to 4.25 per cent, the Bank of England’s inflation forecast for this year will exceed its two per cent target and President Trump’s tariffs will be highlighted as a detriment to UK growth. [...]

  • Mortgage borrowing surges ahead of stamp duty changes

    May 1, 2025

    Net borrowing or mortgages spiked by £9.7bn in March as house buyers looked to clinch deals before higher stamp duty taxes came into effect. Net borrowing levels exceeded £13bn, according to the Bank of England, as the rise compared to February beat market forecasts of £3.2bn.  EY ITEM Club’s Matt Swannell said the surge in [...]

  • Andrew Bailey: Tariffs could push inflation down

    April 24, 2025

    Bank of England Governor Andrew Bailey has suggested that President Trump’s tariffs will have a disinflationary effect on UK prices unless more retaliatory measures kick into effect.  In an interview with CNBC, Bailey said tariffs would slow down UK growth whatever happens but added he would be “encouraged” by a UK trade deal with the [...]

  • If the ONS can’t measure productivity, how are we meant to improve it?

    April 23, 2025

    The ONS's shortcomings are far from trivial, its bad maths is holding back the UK economy, writes Paul Ormerod.

  • Firms scramble to ‘protect bottom line’ amid low growth

    April 16, 2025

    Firms across the UK are putting in “hard work” to limit cost pressures and maintain profits amid low growth, one of the country’s biggest banks has said.  Chancellor Rachel Reeves’s aggressive tax hikes at her last Autumn Budget have piled higher employment costs on businesses large and small, threatening to kill off some companies by [...]

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