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Bank set to hold interest rates after steady inflation and Iran peace deal
Economists said softer inflation and lower oil prices have taken a rate hike off the table, though UK inflation could rise later this year.
- The Bank of England is expected to maintain borrowing costs at 3.75% on Thursday after steady inflation data and a US-Iran peace deal removed pressure for rate increases.
- President Donald Trump announced a US-Iran peace deal set to be signed on Friday, expected to reopen the Strait of Hormuz and stabilize global oil supplies.
- Consumer Prices Index inflation remained at 2.8% in May, below economists' 3% prediction. Victoria Scholar, head of investment for Interactive Investor, said "softer-than-expected inflation data strengthens the case" for holding rates.
- The Federal Reserve will announce its next interest rate decision on Wednesday evening and is widely expected to keep rates on hold, mirroring The Bank's strategy.
- UK inflation is expected to accelerate over coming months as the Iran war energy shock and Ofgem price cap take effect, though The Bank will monitor cost-of-living pressures closely.
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The Northern Echo+7 Reposted by 7 other sources
Bank set to hold interest rates after steady inflation and Iran peace deal
New inflation data has reinforced expectations that policymakers will not need to increase interest rates at the next announcement on Thursday.
·County Durham, United Kingdom
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Bank of England holds interest rates at 3.75% in widely expected move
Following an inflation flatline earlier this week, the Bank of England’s Monetary Policy Committee (MPC) opted to hold interest rates at 3.75% in a 7-2 vote. The two dissenters opted to increase rates to 4%. Commenting on the decision, the MPC noted that although global energy prices have fallen following recent events in the Middle East, they remain higher than pre-conflict and remain volatile. CPI inflation came in at 2.8%, although the MPC no…
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Coverage Details
Total News Sources22
Leaning Left4Leaning Right2Center3Last UpdatedBias Distribution45% Left
Bias Distribution
- 45% of the sources lean Left
45% Left
L 45%
C 33%
R 22%
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