19 June: Bank Of England Expected To Hold Borrowing Costs At 5.25%
The Bank of England is likely to keep the Bank Rate at 5.25% despite annual inflation falling to 2% in May 2024, the lowest since July 2021. This rate aligns with the government’s long-term target. However, commentators suggest that the Bank is unlikely to cut rates due to persistent underlying inflation pressures, including wage growth and services inflation. While food prices decreased, the cost of motor fuel rose. Core CPI, excluding volatile items, was 3.5%. The Bank of England’s decision will be influenced by these mixed signals, with experts predicting that a rate cut is improbable in the immediate term.