Andrew Bailey, governor of the Bank of England, is keen to get inflation down to a 2 per cent target
(AFP or licensors)
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The Bank of England is expected to keep interest rates the same, despite a fall in inflation on Wednesday.
Inflation fell to 3.4 per cent in February – down from 4 per cent in January and the lowest since September 2021, when it was 3.1 per cent.
The positive news on inflation comes ahead of the BoE’s latest interest rate decision on Thursday, with policymakers widely expected to keep rates on hold at 5.25 per cent.
In February when the group met, only one of them, Swati Dhingra, voted to cut rates, two voted for a rise, but the rest said they should stay at 5.25%.
Robert Wood, chief UK economist at Pantheon Macroeconomics, said he expects the same vote this time.
The BoE said in February that it expects inflation to fall back to its target of two per cent between April and June this year, about 18 months earlier than it previously forecast.
Lowest inflation since 2021 brings hope of summer interest rate cut
The Bank of England’s decision on what it should do with interest rates comes after better-than-expected inflation figures.
The figures released by the Office for National Statistics (ONS) on Wednesday morning showed that inflation was 3.4 per cent in February, which is slightly lower than the 3.5 per cent predicted by economists.
This is the lowest level inflation has been at since September 2021. The latest figures are moving gradually closer to the BoE’s 2 per cent inflation target.
Joe Middleton20 March 2024 18:01
Welcome
Hello and welcome to the Independent’s live coverage of the Bank of England’s latest decision on what they should do with interest rates, which are currently at 5.25 per cent.
Speculation is rife in financial markets that policymakers will hold steady and choose to keep interest rates at the same level.
Read our preview of the decision here:
Joe Middleton20 March 2024 17:59