Bank of England has sent 'clear message' over interest rates, economist warns
manchestereveningnews.co.ukThe Bank of England has sent a 'clear message' about interest rates ahead of its latest announcement, according to one expert..
Economist have predicted that the central bank will keep interest rates at 5 per cent when the Monetary Policy Committee (MPC) meets on Thursday to make its latest decision.
The Bank of England’s (BoE) base rate, which affects interest rates on borrowing and saving, was cut to 5 per cent from 5.25 per cent in August - marking the first rate cut since 2020. READ MORE: Bank of England change means take urgent ISA action, says BBC expert Bank governor Andrew Bailey said policymakers were finally able to reduce rates because inflation had “eased enough”.
However, he stressed that they “need to be careful not to cut interest rates too quickly or by too much”. Matt Swannell, chief economic adviser at the EY Item Club, said the MPC "sent a clear message that back-to-back rate cuts were unlikely", suggesting the rate will remain at 5 per cent for now.
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