Bank of England Expected to Hold Rates at 4.5% as Economic Pressures Mount
The central bank faces inflation concerns, sluggish growth, and global trade risks while divisions persist over future rate cuts.
- The Bank of England is predicted to maintain its benchmark interest rate at 4.5% in its March meeting, reflecting a cautious stance on monetary policy.
- Inflation is forecasted to rise to 3.7% in 2025, exceeding the central bank's 2% target, driven by higher energy costs and persistent price pressures.
- The U.K. economy shows signs of stagnation, with weak growth data and concerns over the impact of upcoming employer tax hikes on hiring and investment.
- Divisions within the Monetary Policy Committee highlight differing views on the pace of future rate cuts, with some members advocating for a faster approach.
- The U.K. Treasury's 'Spring Statement' next week is expected to address fiscal challenges, including potential spending cuts or tax increases, amid downgraded economic forecasts.
The Independent 
