From Morningstar: 2024-09-18 06:57:00

UK inflation remains at 2.2%, meeting Bank of England’s target. Core inflation increases to 3.6%. Recent statistics reveal higher airfares offset by lower fuel prices and moderating restaurant costs. Bank of England likely to hold interest rates steady tomorrow. Forecast suggests 75% chance of hold and 25% chance of cut.

In August, UK inflation data shows: Headline CPI 2.2%, Core inflation 3.6%, Highest CPI at 11.1% in 2022, Bank of England target 2%. Experts believe rate hold likely due to inflation under control. Bank’s recent rate cut from 5.25% to 5% may influence Thursday’s decision. Bank aims to analyze recent data before potential rate cut.

Economists predict Bank of England will hold rates tomorrow due increased core inflation. Decision may shift towards holding rates as MPC members analyze inflation trends. November meeting likely for rate cut. Labour Budget and personal finance impact also under scrutiny. Bank’s path of rate cuts slower than expected earlier in the year.

Chief investment strategist forecasts slower UK rate cuts compared to US due to decreasing inflation trend. Bank of England interest rates rose from 0.1% to 5.25% between December 2021 and August 2023. Follows a global trend of lower inflation expectations. Bank likely to cut rates at a slower pace compared to the US.



Read more at Morningstar: UK Inflation Unchanged, Rate Cut Unlikely