The Bank of England (BoE) is due to announce its latest monetary policy decision today, and interest rates are expected to stay unchanged at 4.5%. However, there are increasing worries regarding the slow-stoking economy of the UK, but one thing is keeping the rate cut off, i.e., the stubborn inflation of 3%.
The financial markets predict a 96% chance of the BoE keeping the rates unchanged and a mere 4% probability of a reduction to 4.25%. The British economy is hampered by slow growth, trade uncertainties, and low business confidence, but the central bankers are still hesitant due to the rise in wages and inflation dangers.
In its previous meeting in February, some policymakers pushed for aggressive rate cuts at the Bank of England. It is expected that experts predict another split vote, and members like Dhingra and Mann may push for a 25 basis points cut today.
This comes as global debt has risen to more than $100 trillion and economies are becoming increasingly unstable. However,, all eyes are on the BoE as central banks across the world make crucial monetary policy decisions this week. The US Federal Reserve left rates unchanged, saying it needed more time to understand inflation and economic expansion, while Swiss and Norwegian central banks will also announce their policies soon.
The global financial markets being in a state of panic, everyone is waiting for the BoE’s policy regarding interest rates and its perspective on the British economy.
