Bank of England expected to hold interest rates at 4.5%

When policy makers announce their latest decision on Thursday, Bank of England is expected to keep interest rates.

The bank rate greatly affects the cost of borrowing for homes, businesses and government, as well as returns to savings.

It was cut from 4.75% to 4.5% after the final meeting of the bank’s monetary policy committee (MPC) in February.

While the announcement is not expected when the announcement arrives at 12: 00gmt, many analysts are estimating two more cuts by the end of the year.

The MPC has a membership of five women and four men, including economists and major figures in Bank of England. It is chaired by the bank’s Governor Andrew Bailey. How these members will be closely viewed by the markets.

The committee meets eight times a year, and its decisions have a widespread impact on everything from the cost of mortgage to the ability of businesses to invest.

Its primary purpose is to use interest rates to ensure inflation – the annual rate of rising prices – hits the government’s target of 2%.

Latest Count Shown Inflation rate increased to 3% in JanuaryOne reason is that commentator hopes that interest rates will be kept around this time.

Lowering can stimulate higher expenses by consumers and inflation can be more pushed.

This may be a shock for some household owners who want to see interest rates and in turn, the mortgage rates continue to fall.

“Bank of England’s policy maker of Bank of England is warning on inflation and uncertainty, so relief for home owners seems to be an unpredictable result from this month’s meeting,” said the Credit Agency Ecuifax UK main data and analytics officer Paul Hewood and Analytics Officer said, “So the relief for home owners.

The mortgage interest rates have been gradually dropped down, mainly because the market and debt providers hope that the year falls and falls into the bank rate as the year progresses.

MPC has cut three interest rates from August 2024, which has been extended to its lowest level for 18 months. However, the bank has also said that it will take a “gradual and careful” approach to further cuts.

Low rates can also mean the cost of borrowing low borrowings for loans and credit cards, but may also have low returns on savings.

Those decisions will be operated by the approach to the UK economy.

After the MPC meeting in February, the bank halved its economic development forecast for this year, although it upgraded its forecasts to 2026 and 2027.

It said that the UK economy was now expected to grow 0.75% in 2025, below the previous estimate of 1.5%.

Meanwhile, he said that it is expected that the inflation rate will rise to 3.7% and return to its 2% target by the end of 2027.

There is uncertainty on domestic and global economic policy at the top of these predictions.

Will see next week Chancellor Rachel Reeves gives his spring statementWhich is unlikely to include major policy announcements, but it will include the official forecaster – the office for budget responsibility – UK economy. It will also include some details of the allowance for government departments.

The UK economy is widely seen as underperforming and global factor, such as American trade tariffs, have indirect impact on the UK.