The Bank of England has declared that the base interest rate will remain at 5.25% for at least another six weeks. The bank’s governor, Andrew Bailey, emphasised that there is ‘no room for complacency’ regarding persistently high inflation, and cautioned against thinking about rate cuts too soon. He now anticipates slightly lower inflation for the rest of the year than previously projected. Critics argue that the bank has acted too cautiously, and that, with upcoming events like the general election and declining political popularity, inflation risks are on the rise. The shadow chancellor, Rachel Reeves, considers the Bank's forecasts a ‘damning indictment’ of economic failures by the Conservative Party, highlighting the need for alternative growth strategies.
Economy: interest rates could remain high for longer
Written by David Fletcher 02 Nov 2023Additional Info
- Pray: for wisdom and guidance during these economic challenges, to help leaders make sound decisions. Pray for families and businesses adversely affected by high interest rates. (Proverbs 3:5-6)
- More: news.sky.com/story/interest-rates-latest-what-is-expected-interest-rate-decision-on-thursday-when-will-rates-start-to-come-down-and-will-ultra-low-rates-ever-return-12997975