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Bank of England Expected to Keep Interest Rates Unchanged Despite Rising Inflation
Economists expect the Monetary Policy Committee to keep the Bank Rate at 3.75% as energy costs and inflation pressure build.
- On Thursday, the Bank of England is expected to keep interest rates on hold at 3.75%, though investors are watching for any hint that surging energy prices might force it to follow the U.S. Federal Reserve's recent borrowing cost increase.
- British natural gas and Brent crude futures have surged 20% this month, threatening to push inflation further above the Bank's 2% target, which the central bank has missed in all but three months of the last five years.
- Financial data shows the average five-year fixed mortgage rate at 5.83%, while most economists polled by Reuters last week expected the Bank to maintain the 3.75% rate through year-end.
- The Telegraph reported Tuesday that the Bank may cease sales of 20-year and 30-year gilts, a shift that could offer fiscal room for Finance Minister John Healey ahead of his October 28 budget statement.
- Financial markets currently point to an 80% chance of a rate hike in November, with analysts from investment banking firm Evercore ISI stating that "Nowhere is the gap between market pricing and policymaker expectations more stark than in the UK.
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Global Market: Bank of England seen holding rates as UK inflation climbs
The Bank of England is expected to hold its 3.75% benchmark rate for a sixth meeting despite UK inflation rising to 3.1% in August. Higher fuel and energy costs linked to the Iran conflict are intensifying price pressures. Policymakers will monitor wages and domestic inflation, while markets anticipate possible rate hikes later.
·India
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Bank of England expected to hold rates today
The Bank of England looks set to keep interest rates on hold today but investors are watching for any hint that surging energy prices could force it to follow the example of the US Federal Reserve which raised borrowing costs a day earlier.
·Ireland
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Coverage Details
Total News Sources47
Leaning Left11Leaning Right4Center17Last UpdatedBias Distribution53% Center
Bias Distribution
- 53% of the sources are Center
53% Center
L 34%
C 53%
13%
Factuality
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