Thu, 20 Mar 2025

Thu, 20 Mar 2025 Bank of England expected to hold interest rates at 4.5%

No change to the Bank rate is expected when policymakers make their announcement at noon.

* The Bank of England is expected to keep interest rates unchanged on Thursday, following two rate cuts since February.
* Analysts predict at least two more cuts by year-end, but no change is anticipated for now.
* The Monetary Policy Committee (MPC) has a mix of five women and four men, including economists and senior Bank officials, who will decide the fate of interest rates.
* Their decision will have far-reaching implications for borrowing costs, mortgages, businesses, and savings returns.
* Inflation remains above the 2% target at 3%, and lowering rates could push inflation higher, which may be a concern for homeowners seeking lower mortgage rates.
* Mortgage interest rates have been slowly decreasing due to expectations of further rate cuts, but the MPC has emphasized a "gradual and careful" approach to reductions.
* Lower rates can mean reduced borrowing costs for loans and credit cards but also lower savings returns.
* The UK economy's growth forecast was downgraded by the Bank in February, with a revised estimate of 0.75% growth in 2025 compared to previous expectations of 1.5%.
* Global economic uncertainty and domestic policy decisions, such as the upcoming Spring Statement, will influence the MPC's decision-making process.
* The UK economy is underperforming, and external factors like US trade tariffs are having an indirect impact on the country's economy.
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