Posted 1/28/2024, 12:05:00 PM
Bank of England Balances Rate Cuts With Resilient Economy
- Interest rates unlikely to be cut at Thursday's Bank of England meeting, but cuts expected later in 2024 as inflation falls rapidly
- Bank will watch underlying inflation measures like core inflation, wages, and prices to determine when to cut
- Cutting rates prematurely could face backlash, but pressure from public, politics, and businesses expected in election year
- Bank of England releasing more detailed economic forecasts this week; record and independence under review
- Signs economy is resilient, but Bank understands impact of rate changes better than in past recessions