Bank Of England

Sterling remained higher on the day, at around $1.3297 and at around 86.30 pence per euro

Until the US and Israel started bombing Iran less than three weeks ago, it was viewed as a near certainty that the Bank of England would cut interest rates again on Thursday. Now it's a near-certainty that it will leave its base rate unchanged at 3.75 per cent. The start of the Iran war on February 28 set in a chain of events that has done much to upend global economic forecasts, not least in how it will affect prices. The longer the Iran war and the associated closure of the Strait of Hormuz go on, the greater the economic pain will be. A fifth of the world's crude oil goes through the strait. The most tangible impact has been in oil and gas markets, with prices rising sharply higher since the start of the war. That has already had an impact on prices at the pump and will, if sustained, lead to higher domestic energy bills. With these new inflationary pressures stalking the global economy, central bankers are having to reassess their projections in 2026, both for inflation and ...

Markets are all but ruling out a rate cut this month that had looked like a done deal prior to the war on Iran, and traders now put the chance of any easing at all this year at around 50-50

The Bank of England on Thursday cut its key interest rate for the first time in four months amid signs that the stubbornly high inflation that has plagued British consumers and businesses is beginning to ease. Policymakers at Britain's central bank voted 5-4 to reduce the base rate by a quarter of a percentage point to 3.75 per cent on Thursday, the lowest since February 2023. The move came a day after the Office for National Statistics reported that consumer price inflation slowed to 3.2 per cent in the 12 months through November, from 3.6 per cent a month earlier. The figure was below the Bank of England's forecast of 3.4 per cent. That gave policymakers room to cut interest rates in an effort to bolster Britain's stagnant economy. Statistics released earlier this week showed a weakening jobs market, with the number of job vacancies declining and the unemployment rate rising to 5.1 per cent, the highest since January 2021. Even so, the bank's Monetary Policy Committee was divide

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 per cent on Friday but is still set for a weekly rise of 0.5 per cent, hovering not far from its four-year tops

The Bank of England held its main interest rate at 4 per cent on Thursday as UK inflation concerns weigh on policymakers. The decision was widely anticipated, as was the split of votes on the nine-member Monetary Policy Committee. Seven of the panel backed the decision, while two voted for a quarter-point reduction to 3.75 per cent. The minutes of the meeting showed that the majority were concerned about the path for inflation, which remains stubbornly high. Figures on Wednesday showed inflation held steady at 3.8 per cent in the year to August, double the bank's 2 per cent target. Although we expect inflation to return to our 2 per cent target, we're not out of the woods yet, so any future cuts will need to be made gradually and carefully," Governor Andrew Bailey said. All eyes now turn to the next rate-setting meeting in November. If the bank carries on cutting interest rates once every three months, as it has since August 2024, then it will make a further cut in November. It las

The Monetary Policy Committee is widely expected to reduce its benchmark rate by 25 basis points, to 4 per cent, sticking to its once-a-quarter pace of cutting

Bailey called for greater cooperation between countries, particularly the US and China to resolve unsustainable trade and financial imbalances

The FTSE 100 barely reacted, trading 0.2 per cent lower on the day, roughly where it had been prior to the BoE decision, while two-year gilt yields fell to session lows at 3.886 per cent

The data error means the inflation rate would have been closer to the 3.3 per cent consensus forecast and 3.4 per cent predicted by the central bank

Economists said the figures reflected concerns among employers about a tax increase imposed on them by finance minister Rachel Reeves and over US President Donald Trump's trade war

Minutes from the meeting showed that eight members voted to keep policy unchanged, with one backing a quarter-point reduction

The Bank of England is set to keep UK interest rates unchanged Thursday even though the economy is barely growing and set for further uncertainty in light of the tariff policies being enacted by the Trump administration in the US. The nine-member Monetary Policy Committee is expected to keep the bank's main interest rate at 4.50%, given that inflation remains above target and set to go higher in the coming months, as firms are expected to raise prices as a result of a big increase in the minimum wage and higher payroll taxes. Inflation in the UK rose to a 10-month high of 3% in January further above the bank's target of 2%. And many economists think it could rise as high as 4% in the coming months. The rate-setting panel has reduced the bank's main rate from a 16-year high of 5.25% by a quarter of a percentage on three occasions since last August, most recently in February, after inflation fell from multi-decade highs of over 10%. If it pursues this gradual approach, then it would

In her first public comments since she and Catherine Mann voted for a half-point rate cut on Feb 6, Dhingra said consumer spending was likely to remain weak and inflationary pressures subdued

Donald Trump's tariff threats spark huge gold rush from London to New York as prices surge 11% in the US

Bank of England Governor Andrew Bailey said the BoE would be "monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further"

In the previous session, Sensex dropped 312.53 points, or 0.40 per cent, to close at 78,271.28, while Nifty50 ended lower by 42.95 points, or 0.18 per cent, at 23,696.30

Three of the BoE's nine-person Monetary Policy Committee - Deputy Governor Dave Ramsden and external members Swati Dhingra and Alan Taylor - voted for a quarter-point rate cut to 4.5 per cent

The UK's central bank is set to keep interest rates on hold later Thursday as inflation has moved further above its target rate, even though the British economy is flatlining at best. The nine-member Monetary Policy Committee is widely expected to keep the bank's main interest rate unchanged at 4.75 per cent in the wake of figures showing inflation rising to 2.6 per cent, further above the target of 2 per cent. With price pressures elevated in the crucial services sector, which accounts for around 80 per cent of the UK economy, and wages strong, there are few indications that inflation will get back towards the target anytime soon. As a result, the rate-setting panel, which last cut its key rate in November, is set to take a cautious stance, as lower borrowing rates could stoke inflation. That's a disappointment for many struggling sectors in the UK economy that would be helped by lower interest rates in an environment of paltry growth in fact the British economy has contracted for

BoE has cut Bank Rate only twice from a 16-year peak, helping to make sterling the only currency from the Group of 10 leading economies that has not fallen against the US dollar in 2024