Bank of England Expected to Hold Interest Rates at 4.5% Amid Economic Uncertainty

Policymakers weigh inflation concerns, UK tax changes, and global trade disruptions ahead of Thursday's decision.

• The Bank of England's Monetary Policy Committee (MPC) is predicted to maintain the current interest rate of 4.5% during its upcoming meeting on Thursday.
• Rising UK inflation, driven by higher energy prices, water bills, and bus fares, is a key concern for policymakers, with inflation reaching 3% in January.
• Uncertainty surrounding US President Donald Trump's trade tariffs, which have destabilized global markets, is complicating the MPC's decision-making process.
• Upcoming UK tax increases, including employer national insurance contributions and a higher national living wage, add further economic pressures and uncertainty.
• Economists anticipate potential rate cuts in May and November, as the Bank continues its cautious approach to monetary policy amidst evolving domestic and global conditions.

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