The CNBC report revealed that economists are betting on the bank reduction rates by 25 basis points from 4.75 % to 4.5 % at the Monetary Policy Committee meeting on Thursday. The expected cuts come with the continued stagnation of the British economy, as taxes and wages are hit by companies and threatens US President Donald Trump to increase customs tariffs on global imports.
Report Mentioned 98 % of economists believe that the Bank of England will reduce prices on Thursday. Another Reuters poll also Proposal 90 % of investors expected the bank to reduce prices at the next meeting. Most merchants also changed their speculations with price discounts in 2025 to 3 discounts. CEO Lloyd, Charlie Nun, Backed Speculation, noting that the bank will reduce prices three times in line with GBP interest exchange markets.
UK inflation Decline From 2.6 % expected to 2.5 % in December. Reports indicated that the decrease in the inflation rate means that prices are still rising, but at a slower rate with the decline in the economy since December. SUSANNAH STREETER of Hargreaves Lansdown said that the distinctive conditions “determine the theater for price discounts” at the next meeting.
In August 2024, the UK Central Bank reduced interest rates for the first time in four years, which is borrowing prices from banks from 5.25 % to 5 %. The governor of Boy Bank, Andrew Billy, Stuck After the decision, saying that the price reduction was “accurately balanced” and promised the bank would approach the price cuts with caution. Pelly also suggested that the time has come for the country to put a great enlargement behind it.
England Bank holds price cuts in December
The Bank of England refuses to reduce interest rates because inflation rises again. Reducing growth forecast for the last three months of this year to zero, from the previous prediction by 0.3 percent.
The cost of borrowing for a period of ten years to the government is slightly more than 4.5 percent, more than twice …Andrew Neil (EFNEIL) December 20, 2024
The expected discounts of England Bank will be the first -class cuts that started since the committee’s decision Hold Discounts at the December meeting. Members of the nine committee made an unknown decision, as 6 members chose to maintain price discounts and 3 choose to reduce prices by 25 basis points. The decision competing with opinion polls, which only expected one member of the committee to vote to reduce prices in December.
The choice of the committee resulted in retaining the reduction of prices for a stagnant economy, as the country’s inflation reached the highest level in 8 months. The Bank of England stated that the high inflation was higher than its previous expectations, adding that the service enlargement had also increased. The bank also highlighted that economic growth forecast was 0.3 % lower than its expectations in November.
The divided vote between the Monetary Policy Committee led to speculation that the Bank of England had been divided. The head of the market strategy in Ipore, Matthew Ryan, High Focus focus on the stagnant economy and focus on hawks on the gradual approach to increasing enlargement.
The Bank of England faces uncertainty before the expected discounts
Governor Billy He said The bank will continue to approach interest rate discounts gradually. The ruler added that the Bank of England cannot “adhere” to the time of discounts at the next rate or by a percentage. Billy also highlighted the increasing uncertainty in the markets made it difficult for the bank to set the amount that it will reduce in 2025.
The bank faces issues with the high tariff for President Trump, which many economists believed to hinder Billy’s ability to reduce prices or benefit from the country. Economist Dan Burdmman Weston suggested that the definitions could lead to more imports from China, which leads to a significant decrease in current consumer prices and the influence of UK buyers.
Another economic expert, Anthony Karaamamas, is still Proposal The current uncertainty can lead to economic recession and high inflation. Karaamamas suggested that combining the two possibilities could hinder the ruler’s ability to reduce prices. The economist also suggested that any rash decisions from the central bank will be more necessary for the economy.
Cryptopolitan Academy: Are web3 errors to appeal? – Discover here
