From Daily Mail: 2024-05-09 06:13:36

The Bank of England is expected to keep interest rates at 5.25% despite inflation dropping to 3.2%. Governor Andrew Bailey hints at easing the burden soon. The US Federal Reserve is waiting for more progress on inflation before cutting rates. Economists anticipate the Bank’s first rate cut next month.

The Bank of England may wait on rate cuts due to the US Federal Reserve’s cautious approach to lowering inflation. The Bank will provide more insight into the economy and interest rate predictions in an upcoming report. Analysts believe it is too early for the Bank to cut rates given the current economic scenario. Inflation readings for April and May will play a crucial role in determining future rate decisions.

The Monetary Policy Committee is gradually moving towards a rate cut, with one member voting for a cut in the last meeting. Two key indicators – pay growth and services sector inflation – are influencing the Bank’s decision making. The Bank may hold rates at 5.25% until there is more evidence of inflation subsiding.



Read more at Daily Mail: BoE will announce latest interest rates decision at noon TODAY after saying it doesn’t need to wait for the US to ease pain on mortgages