Bank of England Interest Rates Decision: What to Expect Today

Bank of England Interest Rates Decision

Rolling coverage of the latest economic and financial news.

Political Pressure

Should the Bank of England cut interest rates with Britain’s economy in bloom?

The BoE is also under some political pressure to start cutting interest rates soon, as falling borrowing costs would help Rishi Sunak argue that the economic picture was brightening.

Economic Growth Concerns

Back in March, Sir Geoffrey Clifton-Brown, a senior Conservative MP, said the Bank should move to cut rates to boost economic growth.

• In an election year, the government might feel more of a sense of urgency about a reduction.
• After the historic swing against the Conservatives in the Blackpool South byelection and the loss of many council seats, a return to some kind of normal economic progress is considered by many ministers to be their best hope in the battle with Labour.

Inflation Concerns and Rate Cuts

With inflation forecast to fall below the 2% target as early as next month, pressure on the Bank to cut rates, and by more than once this year, is likely to intensify as Tory frustration grows.