Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank of England poised for interest rate cut amid slowdown concerns

by February 6, 2025
February 6, 2025
Bank of England poised for interest rate cut amid slowdown concerns

The Bank of England is expected to lower its key interest rate later today, moving from 4.75% to 4.5%, in a bid to counter the UK’s sluggish economic performance.

Many analysts point to softer GDP figures and falling inflation as the central drivers behind the likely cut, though the Bank’s mandate to maintain inflation at 2% remains far from met.

After inflation dipped to 2.5% in December, speculation around a rate cut intensified—even though the headline figure still exceeds the Bank’s official target. Governor Andrew Bailey has signalled that any additional cuts this year will be “gradual”, without committing to specific timings or magnitudes. The Bank’s Monetary Policy Committee (MPC) will also publish a fresh outlook on inflation at midday, potentially offering clues to its future strategy.

Concerns around inflation have been exacerbated by US President Donald Trump’s imposition—and threat—of new import tariffs, which could push up global prices and reverberate through supply chains to the UK. Still, some economists argue that higher wage growth, rather than tariffs, is more likely to shape the Bank’s decisions.

In the meantime, the British economy is grappling with stagnant growth figures, posting little to no expansion in the last three months of 2024. The upcoming tax changes announced in the autumn Budget—including higher National Insurance contributions and an increased National Living Wage—are likely to add to business costs, potentially restraining hiring and investment.

Investor nervousness has contributed to heightened volatility in financial markets, sending gilt yields (the government’s borrowing costs) to multi-year highs and weighing on sterling. Looking ahead, the MPC’s decision may strike a delicate balance between preventing any further slowdown and avoiding a resurgence of inflation.

Read more:
Bank of England poised for interest rate cut amid slowdown concerns

0
FacebookTwitterGoogle +Pinterest
previous post
Ex-fortnum chief Venters fashions new role at Paul Smith
next post
Public sector pay gap endangers UK’s cybersecurity, experts warn

You may also like

Getting to Know You: Ian Kinnery, founder of...

July 18, 2023

Made Smarter launches £1M fund to drive digital...

April 23, 2025

CBI business group faces new sexual misconduct claims

April 4, 2023

The Growing Demand for Medical Supplies: Retail and...

November 26, 2024

Hospitality firms plead for energy bill support to...

August 16, 2022

Pound hits fresh 37-year low against dollar

September 22, 2022

Empowering Communities Through Healthcare: A Conversation with Lena...

January 16, 2025

The transformative power of solar energy for UK...

January 5, 2024

People race to exchange paper banknotes before deadline

September 16, 2022

Keir Starmer promises state energy supplier in speech...

September 27, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • DOJ launching grand jury investigation into Russiagate conspiracy allegations: sources

      August 4, 2025
    • Trump’s tariff power grab barrels toward Supreme Court

      August 4, 2025
    • Zenger at 290: The Jury’s Duty to Say No to Government Oppression

      August 4, 2025
    • What Is SameAgeDates? A Closer Look at Presence‑Driven Dating

      August 4, 2025
    • Cryptocurrency Trading: Five Strategies to Strengthen Your Position as a Reputable Broker

      August 4, 2025
    • UAE’s World’s Safest Country Ranking Creates ‘Safety Premium’ in Real Estate Market

      August 4, 2025

    Categories

    • Business (8,661)
    • Investing (2,171)
    • Politics (16,298)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved