Source : WAM
The Bank of England is widely expected to keep interest rates on hold at 3.75 percent as policymakers navigate the challenge of bringing inflation under control while avoiding damage to economic growth.
The majority of economists anticipate that the Bank’s Monetary Policy Committee (MPC) will leave borrowing costs unchanged at its upcoming meeting on Thursday.
In December, the MPC cut interest rates from 4 percent to 3.75 percent, marking the fourth reduction over the course of the year.
At the time, Governor Andrew Bailey said the UK had moved beyond the recent inflation peak and that price pressures were continuing to ease, though he warned that any further rate cuts would require careful judgment.
However, since that decision, new official figures have shown inflation picking up again. Data released for December indicated that inflation rose for the first time in five months.
Consumer Prices Index (CPI) inflation stood at 3.4 percent, up from 3.2 percent in November, with higher tobacco taxes and increased airfares contributing to the rise.
