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19.06.25 - 16:48
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Bank of England keeps interest rates at 4.25% but hints at cuts to come (The Guardian)
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Governor says rates still on downward path but hard to predict timing of reductions in 'highly unpredictable' worldRate decision leaves Reeves praying for an August cut Business live – latest updatesThe Bank of England has left interest rates on hold at 4.25%, though it signalled further cuts in the cost of borrowing later this year after “clearer evidence” of rising unemployment amid a slowing economy.Six members of the Bank's nine-member monetary policy committee (MPC) voted to keep rates on hold while three supported a reduction to 4%, to add to the four quarter-point cuts since last August. Continue reading......
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19.06.25 - 08:42
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Bank of England expected to leave interest rates as Middle East conflict drives up oil price – business live (The Guardian)
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Rolling coverage of the latest economic and financial newsGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.These are challenging times for central bankers. After steering through the Covid-19 pandemic, and then the energy shock after the Russia-Ukraine war, they must now set monetary policy in the face of an unpredictable trade war, and conflict in the Middle East.Escalating tensions in the Middle East, and the upward pressure this is putting on oil prices, will only add to the Bank of England's concern about easing rates too quickly.The Monetary Policy Committee will face a tougher choice when meeting again in August, given the combination of still-sticky inflation and evidence that the labour market is quite clearly cooling. A deterioration in the labour market should, in theory, put downward pressure on inflation, but until there are clear signs of this in the hard data, the Bank should be careful not to claim victory over inflation quite yet, ...
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03.06.25 - 16:24
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UK interest rates more uncertain due to Trump policies, says Bank governor (The Guardian)
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Bank of England policymaking affected by US administration's on-off trade decisions, Andrew Bailey tells MPsBusiness live – latest updatesThe Bank of England governor, Andrew Bailey, has told MPs that the future path of interest rates in the UK has become more uncertain because of Donald Trump's chaotic trade policy.Asked about the impact of on-off tariffs for the Bank's policymaking by the cross-party Treasury select committee, Bailey said “the path remains downwards, but how far and how quickly is now shrouded in a lot more uncertainty, frankly”. Continue reading......
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