The Bank of England is likely to warn of only gradual interest rate cuts in 2025, ending the year with a cautious message to investors as the spectre of stagflation – anaemic growth and sticky inflation – hangs over the British economy.
Markets and economists expect the nine-member monetary policy committee to keep the benchmark cost of borrowing on hold at 4.75 per cent on Thursday. The UK central bank will announce the decision at noon in London.
BoE governor Andrew Bailey and his colleagues are likely to strike a wary tone given the inflation threats brewing at home and abroad. The risk of a global trade war sparked by President-elect Donald Trump returning to the White House and uncertainty over the impact from the UK budget loom large over the outlook.
