Bank of England to keep rates on hold after ECB hike
Policymakers are weighing rising energy costs against a slowing economy, with inflation expectations at 4% in the Bank of England’s survey.
- The Bank's Monetary Policy Committee is widely expected to maintain interest rates at 3.75% on Thursday, navigating dual challenges of an energy shock and a slowing economy.
- Triggered by the US-Israel war with Iran at the end of February, the ongoing energy shock stalled gradual rate reductions that previously fell from a peak of 5.25%.
- New official figures showed GDP declined 0.1%, the first contraction in eight months, while The European Central Bank increased rates, noting the conflict was "generating inflation pressures."
- Suren Thiru, chief economist for ICAEW, said an interest rate hold looks highly certain as policymakers maintain a watchful approach given recent economic weakness.
- Sanjay Raja, chief economist for Deutsche Bank, warned the MPC's "patience may be running thin," noting rates will likely remain steady through 2026 despite increasing odds of a rise.
14 Articles
14 Articles
Property Market Turning? UK House Prices Slip as Mortgage Pressure Builds, Bank of England Holds Rates High
The UK housing market is showing fresh signs of losing momentum as the Bank of England prepares to keep its benchmark interest rate at 3.75% on Thursday, reinforcing expectations that mortgage costs will remain elevated. With house price growth slowing across major indices and affordability pressures continuing to weigh on buyers, analysts increasingly see the market entering a prolonged period of stagnation rather than a renewed phase of growth…
Bank of England to keep rates on hold after ECB hike
The Bank of England looks set to keep interest rates at 3.75% on Thursday as Governor Andrew Bailey judges the central bank can take its time to assess if higher energy prices from the Iran war will generate lasting inflation pressure.
Evening Standard
Bank of England set to hold interest rates as it faces balancing act
Many economists do not think an interest rate hike is on the cards this month.
Will there be a hike in UK interest rates on Thursday? Dun and Bradstreet’s Payne shares his thinking
Marketwatchers will be keeping a keen eye on news screens at lunchtime this Thursday, as the Bank of England’s Monetary Policy Committee shares details of its latest report and interest rate decision. John Payne, Senior Economist at Dun & Bradstreet, has shared his comments with us as follows: Payne said: “We expect the Monetary Policy Committee to hold the Bank Rate at 3.75%. The decision will centre on a trade-off between containing imported i…
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