Interest Rates Decision
The Bank of England’s Monetary Policy Committee (MPC) made a significant move, halting its streak of 14 consecutive rate hikes. By a 6-3 vote, the committee chose to keep the interest rates unchanged at 5.25%, a decision influenced by their assessment of the economic landscape and its foreseeable effect on inflation.
Economic and Inflationary Landscape
Recent data paint a picture of a UK economy losing steam. GDP growth recorded a standstill in Q3 2023 and forecasts suggest a paltry 0.1% rise in Q4. Concurrently, the labor market appears to be loosening its grip. Employment growth is on a downward trend, with certain sectors still grappling with skills shortages. On the inflation front, the rate hovers at an elevated 6.7%, substantially overshooting the MPC’s 2% target. However, a silver lining appears as projections anticipate a drastic…
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