Bank Of England

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

The Bank of England raised interest rates to a 15-year high of 5.25 per cent in August 2023 and started to cut them in August this year followed by a further reduction to 4.75 per cent this month

The increase was the biggest month-to-month rise in the annual CPI rate since October 2022

The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the UK fell below its target rate of 2 per cent. In an announcement Thursday, the bank said its rate-setting panel lowered the benchmark rate to 4.75 per cent. That is its second cut in three months and follows a sharp decline in inflation over the past year. Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia's full-scale invasion of Ukraine which pushed up energy costs. As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates. The US Federal Reserve is also expected to cut interest rates later Thursday. Economists warn that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the econo

According to the RBI's latest report on foreign exchange reserves, as of the end of September, the central bank holds 855 tonnes of gold, with 510.5 tonnes now stored domestically

Britain's growth prospects and public finances meanwhile remain frail

BoE cut borrowing costs in August but kept them on hold at its September meeting, saying it wanted to see further signs that inflation pressures were abating

Tarrant Parsons, RICS' head of market analytics, said the reduction in borrowing costs in August had helped to recover buyer demand

Whatever happens, a sustained period of central bank activism, in contrast to the recent hiatus of higher-for-longer rates, is likely to take hold

The Bank of England has kept its main interest rate unchanged at 5% despite a big cut from the US Federal Reserve, its first since the onset of the coronavirus pandemic more than four years ago. The decision Thursday was widely expected amid ongoing concerns about inflation within the bank's monetary policy committee, particularly the elevated levels in the crucial services sector, which accounts for around 80% of the British economy. Figures on Wednesday showed that inflation overall in the UK held steady at an annual rate of 2.2% in August, still above the bank's goal. The bank, which last month cut interest rates for the first time since the pandemic, is widely expected to reduce borrowing costs again at its next meeting in November, especially as it will have details of the government's budget on Oct 30. On Wednesday, the Fed cut its main interest by half of a percentage point to roughly 4.8% from a two-decade high of 5.3%, where it had stood for 14 months. It also signalled th

Inflation in the UK held steady at an annual rate of 2.2 per cent in August, with higher air fares offset by lower fuel costs and restaurant and hotel bills, official figures showed Wednesday. The latest reading from the Office of National Statistics means inflation remains just above the Bank of England's target of 2 per cent. Last month, the central bank reduced its main interest rate by a quarter-point to 5 per cent, the first cut since the onset of the pandemic. Central banks around the world dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up during the pandemic and then because of Russia's full-scale invasion of Ukraine which pushed up energy costs. Most economists think the bank will opt to keep borrowing costs unchanged after its latest policy meeting on Thursday. However, they think that the bank will most likely cut again in November, in the wake of the ...

The BoE said that its assessment found some shortcomings or areas for further enhancement, but no serious issues were uncovered that were serious enough to hamper the resolution

Friday's data showed a sharp slowdown in US job growth, raising fears of deterioration in American labour market and potential recession, prompting bets for a half-point interest rate cut in September

Thursday's decision was in line with the forecast in a Reuters poll of economists but financial markets had only seen just over a 60 per cent chance of a cut

The Office for National Statistics also said on Thursday it was delaying the switch to a new version of its Labour Force Survey which had been due to take place in September

The 6.5 per cent rise in advertised starting pay compared with a year earlier outstrips the 6.0 per cent rise in official wage data for the three months to April

The Bank of England on Thursday kept its main interest rate at a 16-year high of 5.25 per cent, even though inflation has fallen to its target of 2 per cent. In a statement, some policymakers on the bank's nine-member Monetary Policy Committee voiced worries that some underlying measures of inflation, such as in the services sector, remain elevated, which could be stoked further if interest rates are cut too soon. The decision, which was widely anticipated by economists, is likely to disappoint the governing Conservative Party ahead of the UK's general election in two weeks time. A cut would have been seized upon by Prime Minister Rishi Sunak as positive economic news.

Any hopes the governing Conservative Party may have of the Bank of England cutting its main interest rate from a 16-year high of 5.25 per cent Thursday are expected to be dashed even though inflation in the UK has fallen to its target rate for the first time in nearly three years. Official figures on Wednesday showed that inflation, as measured by the consumer prices index, fell to 2 per cent in the year to May from 2.3 per cent the month before, with food prices providing the biggest downward contribution. That's the first time since July 2021 that inflation has been at the bank's target. Despite the welcome decline, some policymakers on the bank's Monetary Policy Committee appear to be still concerned over the scale of price increases in the crucial services sector and the pace of wage increases, which raise the risks of an inflation rebound if interest rates are cut too soon. That is why an interest rate cut tomorrow is still very unlikely, said Luke Bartholomew, deputy chief ..

Apart from the BoE, investors will also watch out for central bank decisions from Switzerland and Norway on Thursday to set the tone for global rates outlook

The Bank of England said that new notes will only be printed to replace those depicting Queen Elizabeth II that are worn or to meet any rise in demand at a time when cash usage is in decline