The Bank of England is expected to cut interest rates by a quarter-point, the fifth reduction in a year, despite concerns surrounding high inflation and rising unemployment. This decision aims to relieve pressure on households and businesses, with financial markets forecasting almost certain approval. The chancellor, Rachel Reeves, is likely to support the cut amid scrutiny of Labour's economic management. Analysts indicate an internal split within the Bank’s monetary policy committee regarding the best approach to balance inflation control with job preservation and economic growth amidst global uncertainties.
The Bank of England is expected to announce a quarter-point cut to interest rates, marking its fifth reduction in a year amid concerns over inflation and unemployment.
The chancellor, Rachel Reeves, will welcome the cut, which is perceived as a response to Labour's efforts to stabilize the economy following criticism of its management.
City investors predict a split vote among the Bank’s monetary policy committee, with some advocating for a more significant half-point cut to address rising job losses.
The anticipated rate cut will provide relief for households, evidenced by a typical first-time buyer’s mortgage payment decreasing by almost 100 a month.
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