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Bank Of England

Bank of England holds interest rate at 4.5% as inflation remains high

Minutes from the meeting showed that eight members voted to keep policy unchanged, with one backing a quarter-point reduction

Bank of England holds interest rate at 4.5% as inflation remains high
Updated On : 20 Mar 2025 | 6:26 PM IST

BoE set to keep UK rate unchanged at 4.50% despite gloomy economic news

The Bank of England is set to keep UK interest rates unchanged Thursday even though the economy is barely growing and set for further uncertainty in light of the tariff policies being enacted by the Trump administration in the US. The nine-member Monetary Policy Committee is expected to keep the bank's main interest rate at 4.50%, given that inflation remains above target and set to go higher in the coming months, as firms are expected to raise prices as a result of a big increase in the minimum wage and higher payroll taxes. Inflation in the UK rose to a 10-month high of 3% in January further above the bank's target of 2%. And many economists think it could rise as high as 4% in the coming months. The rate-setting panel has reduced the bank's main rate from a 16-year high of 5.25% by a quarter of a percentage on three occasions since last August, most recently in February, after inflation fell from multi-decade highs of over 10%. If it pursues this gradual approach, then it would

BoE set to keep UK rate unchanged at 4.50% despite gloomy economic news
Updated On : 20 Mar 2025 | 1:25 PM IST

BOE policymaker Dhingra says gradual rate cuts would be a drag on economy

In her first public comments since she and Catherine Mann voted for a half-point rate cut on Feb 6, Dhingra said consumer spending was likely to remain weak and inflationary pressures subdued

BOE policymaker Dhingra says gradual rate cuts would be a drag on economy
Updated On : 25 Feb 2025 | 8:28 AM IST

Gold rush: Why JPMorgan, HSBC are pulling bullion from Bank of England

Donald Trump's tariff threats spark huge gold rush from London to New York as prices surge 11% in the US

Gold rush: Why JPMorgan, HSBC are pulling bullion from Bank of England
Updated On : 17 Feb 2025 | 11:41 AM IST

Bank of England cuts rates to 4.5%, sees higher inflation, weaker growth

Bank of England Governor Andrew Bailey said the BoE would be "monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further"

Bank of England cuts rates to 4.5%, sees higher inflation, weaker growth
Updated On : 06 Feb 2025 | 6:14 PM IST

Markets Today: SBI, Hero MotoCorp Q3; Gold; FIIs; RBI MPC; Chamunda IPO

In the previous session, Sensex dropped 312.53 points, or 0.40 per cent, to close at 78,271.28, while Nifty50 ended lower by 42.95 points, or 0.18 per cent, at 23,696.30

Markets Today: SBI, Hero MotoCorp Q3; Gold; FIIs; RBI MPC; Chamunda IPO
Updated On : 06 Feb 2025 | 7:15 AM IST

BoE keeps interest rates steady at 4.75%, but MPC members split on decision

Three of the BoE's nine-person Monetary Policy Committee - Deputy Governor Dave Ramsden and external members Swati Dhingra and Alan Taylor - voted for a quarter-point rate cut to 4.5 per cent

BoE keeps interest rates steady at 4.75%, but MPC members split on decision
Updated On : 19 Dec 2024 | 6:53 PM IST

BoE to hold key rate despite slow economic growth, high inflation

The UK's central bank is set to keep interest rates on hold later Thursday as inflation has moved further above its target rate, even though the British economy is flatlining at best. The nine-member Monetary Policy Committee is widely expected to keep the bank's main interest rate unchanged at 4.75 per cent in the wake of figures showing inflation rising to 2.6 per cent, further above the target of 2 per cent. With price pressures elevated in the crucial services sector, which accounts for around 80 per cent of the UK economy, and wages strong, there are few indications that inflation will get back towards the target anytime soon. As a result, the rate-setting panel, which last cut its key rate in November, is set to take a cautious stance, as lower borrowing rates could stoke inflation. That's a disappointment for many struggling sectors in the UK economy that would be helped by lower interest rates in an environment of paltry growth in fact the British economy has contracted for

BoE to hold key rate despite slow economic growth, high inflation
Updated On : 19 Dec 2024 | 4:53 PM IST

Bank of England set to stay in central bank slow lane, keep rates on hold

BoE has cut Bank Rate only twice from a 16-year peak, helping to make sterling the only currency from the Group of 10 leading economies that has not fallen against the US dollar in 2024

Bank of England set to stay in central bank slow lane, keep rates on hold
Updated On : 11 Dec 2024 | 12:31 PM IST

UK house prices slightly more affordable in 2024, reports Halifax

The Bank of England raised interest rates to a 15-year high of 5.25 per cent in August 2023 and started to cut them in August this year followed by a further reduction to 4.75 per cent this month

UK house prices slightly more affordable in 2024, reports Halifax
Updated On : 28 Nov 2024 | 10:04 AM IST

UK inflation rises by 2.3% in October, again more than BOE's expectation

The increase was the biggest month-to-month rise in the annual CPI rate since October 2022

UK inflation rises by 2.3% in October, again more than BOE's expectation
Updated On : 20 Nov 2024 | 2:26 PM IST

Bank of England cuts rates but sees higher inflation after Reeves' budget

The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the UK fell below its target rate of 2 per cent. In an announcement Thursday, the bank said its rate-setting panel lowered the benchmark rate to 4.75 per cent. That is its second cut in three months and follows a sharp decline in inflation over the past year. Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia's full-scale invasion of Ukraine which pushed up energy costs. As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates. The US Federal Reserve is also expected to cut interest rates later Thursday. Economists warn that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the econo

Bank of England cuts rates but sees higher inflation after Reeves' budget
Updated On : 07 Nov 2024 | 6:12 PM IST

Dhanteras special: RBI brings home 102 tonnes of gold; here's why

According to the RBI's latest report on foreign exchange reserves, as of the end of September, the central bank holds 855 tonnes of gold, with 510.5 tonnes now stored domestically

Dhanteras special: RBI brings home 102 tonnes of gold; here's why
Updated On : 30 Oct 2024 | 7:46 PM IST

Lloyds confidence grows, rising house prices as Q3 profit beats forecasts

Britain's growth prospects and public finances meanwhile remain frail

Lloyds confidence grows, rising house prices as Q3 profit beats forecasts
Updated On : 23 Oct 2024 | 1:09 PM IST

UK pay grows slowest in two years as BoE considers when to cut rates again

BoE cut borrowing costs in August but kept them on hold at its September meeting, saying it wanted to see further signs that inflation pressures were abating

UK pay grows slowest in two years as BoE considers when to cut rates again
Updated On : 15 Oct 2024 | 1:28 PM IST

UK property market strengthens, pressure on renters intensifies: RICS

Tarrant Parsons, RICS' head of market analytics, said the reduction in borrowing costs in August had helped to recover buyer demand

UK property market strengthens, pressure on renters intensifies: RICS
Updated On : 10 Oct 2024 | 9:25 AM IST

Fed drives global push to cut rates despite uncertainties over 2025

Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold

Fed drives global push to cut rates despite uncertainties over 2025
Updated On : 01 Oct 2024 | 9:02 AM IST

Bank of England keeps main rate on hold at 5% in wake of US Fed cut

The Bank of England has kept its main interest rate unchanged at 5% despite a big cut from the US Federal Reserve, its first since the onset of the coronavirus pandemic more than four years ago. The decision Thursday was widely expected amid ongoing concerns about inflation within the bank's monetary policy committee, particularly the elevated levels in the crucial services sector, which accounts for around 80% of the British economy. Figures on Wednesday showed that inflation overall in the UK held steady at an annual rate of 2.2% in August, still above the bank's goal. The bank, which last month cut interest rates for the first time since the pandemic, is widely expected to reduce borrowing costs again at its next meeting in November, especially as it will have details of the government's budget on Oct 30. On Wednesday, the Fed cut its main interest by half of a percentage point to roughly 4.8% from a two-decade high of 5.3%, where it had stood for 14 months. It also signalled th

Bank of England keeps main rate on hold at 5% in wake of US Fed cut
Updated On : 20 Sep 2024 | 1:21 AM IST

UK inflation steady at 2.2% ahead of Bank of England's next rate decision

Inflation in the UK held steady at an annual rate of 2.2 per cent in August, with higher air fares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday. The latest reading from the Office of National Statistics means inflation remains just above the Bank of England's target of 2 per cent. Last month, the central bank reduced its main interest rate by a quarter-point to 5 per cent, the first cut since the onset of the pandemic. Central banks around the world dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up during the pandemic and then because of Russia's full-scale invasion of Ukraine which pushed up energy costs. Most economists think the bank will opt to keep borrowing costs unchanged after its latest policy meeting on Thursday. However, they think that the bank will most likely cut again in November, in the wake of the ...

UK inflation steady at 2.2% ahead of Bank of England's next rate decision
Updated On : 18 Sep 2024 | 1:23 PM IST

Top UK lenders could be dismantled smoothly in crisis, says Bank of England

The BoE said that its assessment found some shortcomings or areas for further enhancement, but no serious issues were uncovered that were serious enough to hamper the resolution

Top UK lenders could be dismantled smoothly in crisis, says Bank of England
Updated On : 06 Aug 2024 | 12:32 PM IST