"We expect the Bank of England to keep rates unchanged this week. Inflation is easing but remains above target, and the Bank will want to see the government's fiscal plans before committing to another cut."
"The data has become more balanced. Price pressures are cooling, but demand is softening. Policymakers are likely to wait for greater clarity before adjusting further. Holding steady gives them more control at a critical point in the economic cycle."
"The gilt market is signalling that investors now expect a longer hold period. For many, this creates opportunities. UK government bonds offer solid yield and relative safety, particularly if inflation continues to drift lower in the coming months."
The Bank of England is expected to hold interest rates at 4%, pausing the recent pattern of quarterly cuts. Inflation has eased but remains well above the 2% target, while economic growth is weak and households face tighter conditions ahead of the Budget. Policymakers are likely to wait for greater clarity on fiscal plans before committing to further cuts, aiming to maintain control at a critical point in the cycle. Markets have adjusted to the pause: the pound is stable, gilt yields are around 4.2%, and investors see UK government bonds as offering yield and safety.
Read at London Business News | Londonlovesbusiness.com
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