The Bank of England has kept the base interest rate at 5.25%, marking the third month in a row without change.
This move was largely expected, and echoes governor Andrew Bailey’s recent cautious stance. And in the minutes from the Bank’s rate-setting committee meeting, it said interest rates would need to remain higher “for sufficiently long” to return inflation to 2%.
The Guardian has reported that money markets have moved to price-in four quarter-point cuts to interest rates, starting from the summer, anticipating the base rate would be slashed from 5.25% to as low as 4.25% by the end of 2024.
