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UK Interest Rates

  • Wage growth accelerates again as concerns about inflation rise

    February 18, 2025

    Wage growth accelerated again in the final quarter of last year, new figures show, in a reminder that the UK economy still faces sticky price pressures.

  • City braces for inflation rebound

    February 17, 2025

    City analysts expect the headline rate of inflation to rise to 2.8 per cent, up from 2.5 per cent in December.

  • BoE’s Greene backs ‘cautious’ interest rate cuts despite ‘uncomfortable’ growth performance

    February 12, 2025

    A rate-setter at the Bank of England backed a “cautious” approach to cutting interest rates despite the “uncomfortable” recent performance of the economy. “The macroeconomic news over recent months has been uncomfortable,” Megan Greene, an external member of the Monetary Policy Committee (MPC) said. “GDP has roughly flatlined since Spring of last year and expectations [...]

  • Bank of England needs to ‘cut through the noise’, rate-setter says

    February 11, 2025

    In a speech delivered in Leeds, Mann explained that the persistence of "embedded inflationary behaviours" had diminished due to growing weakness in the economy.

  • Investors are not taking the Bank of England seriously

    February 11, 2025

    The Bank is clearly far more nervous about inflation than many in the City.

  • City split following Bank of England’s interest rate decision

    February 7, 2025

    Analysts are divided about how far and how fast the Bank of England is likely to cut interest rates in the remainder of this year following yesterday’s decision. Rate-setters backed a third 25 basis point rate reduction, which brought the Bank Rate down to an 18-month low of 4.5 per cent. Every member of the [...]

  • Stagflation: Chancellor Rachel Reeves faces mess of her own making

    February 7, 2025

    The Bank now expects the UK economy to grow 0.7 per cent this year, cut from a previous estimate of 1.5 per cent. Inflation, meanwhile, will hit 3.7 per cent later this year.

  • What the Bank of England interest rate cut means for your money

    February 6, 2025

    Consumers need “careful financial planning in the months ahead” after the Bank of England cut interest rates on Thursday, wealth manager Quilter has warned. Financial planner at Quilter Holly Tomlinson said the 25 basis point cut will be “good news” for borrowers, whilst savers will be stung by lower returns on deposits.  Tomlinson said: “Banks [...]

  • Why the Bank of England slashed its growth forecasts

    February 6, 2025

    The Bank of England delivered Chancellor Rachel Reeves a mixed blessing on Thursday. Alongside cutting interest rates by 25 basis points, Bank officials halved the UK’s expected growth rate in 2025 to 0.7 per cent from a previous estimate of 1.5 per cent. This will come as a blow to Reeves, who has staked her [...]

  • Bank of England cuts interest rates despite looming inflation surge

    February 6, 2025

    The Bank of England cut interest rates by 25 basis points on Thursday, even though rate-setters expect to see a significant rise in inflation over the coming year.  Seven members of the Bank’s Monetary Policy Committee (MPC) backed the decision, while two – Swati Dhingra and Catherine Mann – voted for a larger 50 basis [...]

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