Aug. 1, 2024
Bank of England Considers First Interest Rate Cut Since Early COVID-19 Pandemic
TMTPOST--The Bank of England may cut borrowing costs on Thursday for the first time since the onset of the COVID-19 pandemic over four years ago, although economists suggest the decision will be a close call. There is division among economists on whether the Bank of England will reduce its main interest rate by a quarter-point from the current 16-year high of 5.25%, or delay the move until September. Despite inflation hitting the bank's target of 2%, some members of the nine-member Monetary Policy Committee have expressed concerns about persistent price pressures in the services sector, which comprises around 80% of the British economy. UK's interest rates have remained unchanged for a year following a series of dramatic hikes. However, signs over the past few months indicate the Monetary Policy Committee is leaning towards a cut, with two of the nine members supporting a reduction in the last two meetings.
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