Bank of England Holds Rates Steady But Inches Closer to Rate Cut Amid Slowing Inflation and Recession Concerns
• Bank of England holds interest rates at 5.25% but signals it is moving closer to a rate cut as inflation falls back towards 2% target • For the first time since 2020, one policymaker voted for an immediate rate cut to 5%, while two voted for a hike to 5.5% • Bank governor says more evidence needed that inflation will stay at 2% target before rates can be cut • Forecasts suggest keeping rates at current level could push barely growing economy into recession • Some economists predict rate cuts could begin from summer onwards if inflation continues to fall quickly