Reported 8 months ago
The Bank of England is likely to maintain interest rates at a 16-year high of 5.25% as persistent inflation pressures continue, impacting Prime Minister Rishi Sunak's prospects ahead of the July 4 election. Despite recent data showing a decline in headline inflation, the central bank remains cautious due to slower-than-expected services price inflation and elevated private-sector wage growth. The possibility of a rate cut in June was previously mentioned by Bank of England Governor Andrew Bailey, but economists do not anticipate a rate reduction this month, with August 1 being the favored start date for a potential easing cycle.
Source: YAHOO