Interest rates expected to be held as Budget looms

"Policymakers at the Bank of England are widely expected to hold interest rates at 4% following their final meeting before the chancellor's Budget. Some Bank watchers have suggested that the latest inflation data could strengthen the case for a cut, but most commentators think such a move is more likely in December. In September, the Bank's governor Andrew Bailey said he still expected further rate cuts, but the pace would be "more uncertain"."

"The Bank's base rate has an impact on the cost of borrowing for individuals and businesses, and also on returns on savings. The Bank's Monetary Policy Committee (MPC) will make its latest announcement at 12:00 GMT with most analysts predicting a hold. The Bank of England has reduced its benchmark interest rate by 0.25 percentage points every three months since August last year. However, that cycle is widely expected to be broken this time."

"They expect a split in the vote among the nine-member committee. For the first time, the views of each individual on the MPC will be published alongside the wider decision. Danni Hewson, head of financial analysis at AJ Bell, said the market was giving a one in three chance of a rate cut to 3.75%. "The odds are still firmly in favour of a hold," she said."

Policymakers at the Bank of England are widely expected to hold the base interest rate at 4% in the final meeting before the chancellor's Budget. Some analysts say recent inflation data could strengthen the case for an immediate rate cut, but most expect any reduction to come in December. The governor previously said further cuts remain expected but with a more uncertain pace. The MPC considers inflation, jobs, and wages when setting policy. September inflation stood at 3.8%, above the 2% target but lower than forecast, with food and drink inflation easing. Some banks predict a split vote and a cut to 3.75%.

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