BoE likely to keep interest rate at 4%

VTV.vn - Investors and economic experts believe that the BoE's Monetary Policy Committee (MPC) will keep interest rates at 4%.

Bank of England headquarters in London. (Photo: AFP/VNA)

The Bank of England (BoE) is expected to not cut interest rates at its meeting on November 6, slowing down the pace of policy easing that has been maintained regularly every quarter for more than a year.

Investors and economists believe the BoE's Monetary Policy Committee (MPC) will keep interest rates unchanged at 4%, as UK inflation remains close to double the 2% target and the government prepares to announce its autumn budget on November 26.

The decision to keep borrowing costs unchanged will break the BoE’s rotating cycle of rate cuts between meetings that has been in place since August 2024. The move is in contrast to the US Federal Reserve, which continued to ease policy on October 29.

However, the pause may be short-lived. Traders now believe the BoE will cut rates in December 2025, after weaker-than-expected inflation, employment and growth figures. The likelihood of a cut at the next meeting is still considered low, but the probability for December 18 has risen to almost 60%.

Governor Andrew Bailey said it was too early to determine the timing of the next rate cut, especially as this meeting comes just three weeks before Finance Minister Rachel Reeves delivers the government 's crucial budget.

Source: https://vtv.vn/boe-nhieu-kha-nang-giu-nguyen-lai-suat-4-100251102185550665.htm