Reported 26 days ago
Economists are warning that the Bank of England's (BOE) efforts to combat high inflation may be prolonged due to Chancellor Rachel Reeves' proposed budget, which includes a £142 billion borrowing increase for public investments and wage hikes. This plan has raised concerns among traders, suggesting a more cautious approach to future interest rate cuts, with the potential for higher inflation and borrowing costs. While the BOE had recently cut rates, this budget may lead to a slower pace of monetary easing, potentially impacting economic growth and inflation forecasts.
Source: YAHOO