The Bank of England on Thursday kept its benchmark interest rate unchanged at 4 per cent, with inflation in the UK still running at nearly double its 2 per cent target. The move was widely expected by markets.
Fresh data released on Wednesday showed annual inflation holding steady at 3.8 per cent in August, AP reported.
The central bank began lowering borrowing costs in August 2024 after inflationary pressures from Russia’s invasion of Ukraine started to ease. Since then, the Bank has reduced rates in a measured manner every three months.
If the current pattern continues, the next cut would be due in November. However, economists remain divided on the outlook, pointing to stubborn price pressures and relatively high wage growth that have made inflation “stickier than anticipated.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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