Bank of England expected to hold interest rates at 4.5% amid inflation concerns

The Bank of England is expected to keep its base rate steady at 4.5% due to rising inflation at 3% and uncertain economic growth. Analysts foresee that while the market anticipates future rate cuts, policymakers are taking a cautious stance. The decision impacts borrowing costs across various sectors, including mortgages and business loans. Despite previous rate cuts, concerns about inflation and global uncertainty prevail, leading to a careful approach. The upcoming Spring Statement by Chancellor Rachel Reeves may also influence economic forecasts and government spending plans.

Bank of England policymakers have been warning on inflation and lingering uncertainty, so further rate cutting relief for homeowners looks to be an unlikely outcome from this month's meeting.

The Bank has signalled a 'gradual and careful' approach, meaning borrowers hoping for immediate relief may need to wait longer.

Read at Business Matters