CITY AM – Bank to hold rates again as recession looms

Bank of England to leave interest rates on hold as UK economy teeters on brink of recession

CITY AM SAYS The Bank of England will likely leave interest rates on hold for the fourth time in a row when it meets on Thursday this week, economists have said, as the UK economy teeters on the brink of recession.

This would mean interest rates remain at 5.25 per cent having been raised from just 0.1 per cent at the end of 2021.

Despite a slight uptick in December, when the headline rate of inflation came in at four per cent, inflation in the UK has generally come in much lower than predicted by the Bank over the last few months. In its November round of forecasts, the Bank predicted inflation would be 4.6 per cent by the end of 2023.

At the Bank’s last meeting in December, six members of the nine-strong Monetary Policy Committee (MPC) voted to keep rates on hold with three backing another hike.

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