Posted 2/1/2024, 12:18:00 PM
Bank of England Holds Rates Steady But Signals Cuts Could Come Soon as Inflation Eases
- Bank of England keeps interest rates unchanged at 5.25% but hints rate cuts could come soon as inflation falls
- Inflation forecast to drop below 2% in coming months but expected to rise back above target later in 2023
- One MPC member voted for immediate rate cut; markets expect up to 1 percentage point of cuts this year
- Higher pay growth and services inflation could keep inflationary pressures high
- Bank says rates need to stay restrictive for extended period to get inflation down sustainably