Bank of England ‘unlikely’ to cut interest rates as inflation pressure grows
Bank of England to make latest interest rate decision after inflation pressure
- The Bank of England is widely predicted to keep UK interest rates at 4.25% during its Monetary Policy Committee meeting on Thursday.
- This decision is influenced by rising food inflation, which saw prices for food and non-alcoholic drinks increase by 4.4% in May, and the threat of surging oil prices.
- The overall Consumer Prices Index (CPI) rate reached 3.4% in May, slightly higher than economists' expectations, with chocolate prices notably soaring by nearly 18%.
- Economists from Niesr and Investec suggest that while services inflation has dropped, persistent wage growth, higher government spending, and Middle East tensions contribute to economic uncertainty.
- While rates are expected to be held this week, some analysts believe another rate cut could be considered at the subsequent MPC meeting in August.