Home Business NewsBusinessBanking News Bank of England ‘almost certain’ to ‘deliver no change in interest rates’

Bank of England ‘almost certain’ to ‘deliver no change in interest rates’

by LLB Finance Reporter
10th Dec 23 3:13 pm

Economists are predicting that the Bank of England will “deliver no change in interest rates” which will remain steady for the third time in a row.

On 14 December the Bank of England Monetary Policy Committee (MPC) will hold their final meeting this year.

In September and again in November the MPC held interest rates after there was a notable cooling in the rate of inflation.

Martin Beck, chief economic advisor to the EY Item Club, said, “December’s MPC meeting will almost certainly prove the third in succession to deliver no change in interest rates.

“There’s been nothing in the way of significant economic surprises over the last four weeks and inflation and pay growth have slowed (the former by more than the Bank of England expected).”

The Bank’s governor Andrew Bailey has suggested that interest rates could remain held at 5.25% for some time.

James Smith, developed markets economist at ING, said, “Markets are pricing three rate cuts in 2024 and we doubt the Bank will be too happy about that.

“Expect policymakers to reiterate that rates need to stay restrictive for some time.

“We only get a statement and minutes on Thursday, and no press conference or forecasts, so the opportunity to shift the messaging is fairly limited.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]