Bank of England Base Rate Reduced 25 Basis Points as Was Expected – Currency Thoughts
Bank of England Base Rate Reduced 25 Basis Points as Was Expected
November 7, 2024
The Bank of England’s 25-basis point base rate cut to 4.75% was favored by 8 of 9 committee members, with Catherine Mann dissenting with a vote of no change. This was the second 25-basis point reduction since August and follows a whole year in which the rate stayed at a peak 5.25%. British CPI inflation has slowed to a 41-month low of 1.7% but faces a likely rise toward 2.5% due to base effects this quarter. A released statement contends that period of economic slack may be required to normalize pay and price-setting dynamics fully and therefore defends a cautious approach to lessening the extent of monetary policy restraint.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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