Bank of England sticks with 5.25% interest rate but hints at coming cut
by Richard Partington Economics correspondent from on (#6J9XE)
Inflation forecast to temporarily fall below 2% in May as policymakers' vote on base rate splits three ways
The Bank of England has dropped the broadest possible hint that the next move in interest rates will be downwards after forecasting inflation will fall below 2% within months, despite keeping borrowing costs unchanged for a fourth consecutive time.
Threadneedle Street stressed that more evidence was required that inflation would stick at the target set by the government before the Bank could deliver a first cut to borrowing costs since the start of the pandemic. It warned that risks from fast-rising prices remained amid the cost of living crisis.
Continue reading...