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

Policymakers face challenges from rising UK inflation, U.S. trade tariffs, and potential fiscal tightening in the upcoming budget.

The Bank of England's Monetary Policy Committee (MPC) is widely expected to maintain the benchmark interest rate at 4.5% during its meeting on Thursday.
Global factors, including U.S. President Donald Trump's trade tariffs and a $5 trillion drop in U.S. equity markets, are contributing to economic uncertainty.
UK inflation has risen to 3% in January, driven by higher energy prices, water bills, and transportation costs, complicating the MPC's decision-making process.
Economists predict further interest rate cuts in May and November, with the Bank taking a cautious approach to rate adjustments since last August.
The MPC will also assess the potential impact of April's increases in regulated prices, employer national insurance contributions, and the national living wage on inflation and employment.