Bank of England Expected to Pause Interest Rate Cuts Amid Inflation Concerns

The central bank likely to maintain rates at 5% as it assesses economic conditions and inflationary pressures.

The Bank of England is anticipated to hold interest rates at 5% during its upcoming meeting, following a cut from 5.25% in August.
Governor Andrew Bailey emphasized the need for caution in further rate cuts due to persistent inflationary pressures, particularly in the services sector.
Economists predict that the Bank may resume rate cuts in November, contingent on updated economic forecasts and the impact of the upcoming Budget.
The UK economy showed no growth in July, marking the second consecutive month of stagnation, which could influence future rate decisions.
The Bank's decision on the pace of its quantitative tightening program is also highly anticipated, with potential adjustments to its bond sales strategy.