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Economists say the time is approaching for the Bank of England to relax its tough line on borrowing costs

Bank of England set to start on path towards rate cuts

The Bank of England is expected to take a tentative first step towards cutting interest rates from their highest level in nearly 16 years next week after signs that the inflation crisis is abating.

Business • 23 Jan 24

The UK annual rate of inflation rose for the first time in 10 months in December, increasing to 4% from a more-than-two-year low 3.9% in November

Tobacco duty behind surprise rise in UK inflation

Britain's annual rate of consumer price inflation rose for the first time in 10 months in December, increasing to 4% from a more-than-two-year low 3.9% in November, official figures unexpectedly showed today.

Business • 17 Jan 24

The Bank of England has been worried that pay is rising too quickly for inflation to fall to its 2% target

UK wages growth slows to 6.6% in 3 months to November

British wages grew at the slowest pace in almost a year, according to official data published today that added to signs of a gradual cooling of the inflationary pressure in the labour market that has worried the Bank of England.

Business • 16 Jan 24

The UK economy grew by 0.3% in November, new ONS figures show today

UK economy grew in November but still risks recession

Britain's economy grew slightly more strongly than expected in November but remains at high risk of slipping into a recession, a potential blow for Prime Minister Rishi Sunak before an election expected in 2024.

Business • 12 Jan 24

ECB President Christine Lagarde has tried to play down euro zone interest rate cuts

Interest rates - is the 'Big Ease' coming in 2024?

As 2024 comes into view, investors, economists, business leaders and everyday consumers from London to Lyons to Los Angeles share a common hope: Let the interest rate cuts begin!

Business • 28 Dec 23

The UK economy contracted by 0.1% in the third quarter of 2023, new ONS figures show today

UK recession may be under way as economy shrinks in Q3

Britain's economy might be in a recession, according to data that showed it shrank between July and September, shortly after finance minister Jeremy Hunt took the rare step of suggesting the Bank of England might cut interest rates to boost growth.

Business • 22 Dec 23

UK inflation sees surprise fall to 3.9% in November

UK inflation rate falls to lower than expected 3.9%

British inflation fell in November to its lowest rate in over two years, prompting investors to pile further into bets that the Bank of England will cut interest rates in the first half of next year.

Business • 20 Dec 23

No rate changes from the Bank of England today

Bank of England holds UK interest steady again

The Bank of England has today left interest rates unchanged at 5.25% as expected and said rates would remain high for an "extended period".

Business • 14 Dec 23

The Bank of England has hiked interest rate in 14 consecutive meetings until they peaked at a 15-year high of 5.25%

Bank of England expected to hold rates steady again

The Bank of England is expected to hold interest rates for the third time in a row, as fresh data has pointed towards potential cracks in the economy.

Business • 14 Dec 23

The Bank of England is widely expected to keep Bank Rate at 5.25% tomorrow and signal once again that it is not close to cutting rates

UK economy shrinks ahead of BoE rates decision

Britain's economy shrank in October, official data showed today, raising the risk of a recession and testing the Bank of England's resolve to stick to its tough anti-inflation line against cutting interest rates from their 15-year high.

Business • 13 Dec 23

The Bank of England said it estimates the impact of the final leg of Basel on UK banks will be 'low'

UK banks face smaller impact from Basel rules

The Bank of England said today that implementing the final leg of the global Basel bank rules will increase capital requirements at UK banks by 3%, far less than for their European Union and US peers.

Business • 12 Dec 23

UK earnings, excluding bonuses, were 7.3% higher than a year earlier, new ONS figures show

UK pay growth slows but probably still too high for BoE

British wage growth slowed more than expected in the three months to the end of October, official data showed, but pay is probably still increasing too quickly to persuade the Bank of England to cut interest rates any time soon.

Business • 12 Dec 23

The Bank of England is forecast to keep borrowing costs at a 15-year high at its next meeting on December 14, according to a Reuters poll

Bank of England to hold its line against rate cut talk

The Bank of England looks set to stick to its tough line against talk of interest rate cuts in Britain, even as other leading central banks signal that they might be approaching a turning point in their fight against inflation.

Business • 08 Dec 23

The OECD has forecast that UK GDP will grow by 0.7% next year - down slightly from its previous forecast of 0.8% - and by 1.2% in 2025

UK needs tougher fiscal policy amid tax cut talk - OECD

Britain's government should tighten its budgetary belt, the OECD said today, advice that is unlikely to be welcomed by Prime Minister Rishi Sunak who is expected to cut taxes again before a 2024 election.

Business • 29 Nov 23

The ONS said the increase in UK consumer prices was the smallest since October 2021

UK inflation rate falls to lower-than-expected 4.6%

British inflation cooled by more than expected in October as household energy prices dropped from a year ago while stubbornly high services sector price growth also eased.

Business • 15 Nov 23

UK earnings, excluding bonuses, were 7.7% higher than a year earlier in the third quarter of 2023

UK wage growth cools slightly but stays close to record

British wages grew slightly less fast in the three months to September but remained close to their record pace, according to official data that will do little to ease the Bank of England's concerns about inflation pressures.

Business • 14 Nov 23

A poll of economists had pointed to a fall in gross domestic product of 0.1% in the third quarter but official data showed the figure at 0%

UK economy fails to grow in third quarter - ONS

Britain's stagnating economy failed to grow in the three months from July to September but at least managed to avoid the start of a recession, figures from the Office for National Statistics showed today.

Business • 10 Nov 23

Central Bank Governor Gabriel Makhlouf speaking at today's conference in Dublin (Picture: Central Bank)

Far too early for talk of interest rate cuts - Makhlouf

The Governor of the Central Bank Gabriel Makhlouf has said the economy and financial system "is still adjusting to the change in interest rates by central banks."

Business • 08 Nov 23

Traders now price around an 80% chance of a 25 basis-points (bps) ECB cut by April

Traders bet ECB first big central bank to cut rates

Financial markets are ramping up expectations for interest rate cuts from the European Central Bank, betting it will be the first major central bank to ease policy to buffer a euro zone economy facing recession in contrast to a robust US.

Business • 03 Nov 23

The Bank of England said today it does not expect to cut interest rates any time soon

Bank of England keep UK interest rates at 15-year high

The Bank of England held interest rates at a 15-year peak today as it kept up its fight against the highest inflation among the world's big rich economies, and it stressed that it did not expect to cut them any time soon.

Business • 02 Nov 23

Lack of homes for sale gives UK prices surprise boost

British house prices unexpectedly rose by almost 1% in October but the increase was due more to a lack of homes for sale than a turnaround in the market which has been hit by a jump in borrowing costs, mortgage lender Nationwide said.

Business • 01 Nov 23

The final reading of the S&P Global/CIPS manufacturing Purchasing Managers' Index stood at 44.8 in October, down from an early estimate of 45.2

UK factories struggle in October in new downturn sign

UK factories suffered a worse October than previously thought, according to a survey published a day before the Bank of England is expected to restate its intent to keep interest rates high, despite widespread signs of an economic slowdown.

Business • 01 Nov 23

British consumer price inflation had hit a 41-year high of 11.1% in October 2022

UK inflation rate holds at 6.7% in September

British annual consumer price inflation was unchanged at 6.7% in September holding at August's 18-month low, official data showed today.

Business • 18 Oct 23

UK average earnings, excluding bonuses, were 7.8% higher than a year earlier during the three months to the end of August

UK regular pay grows 7.8% in three months to August

British average earnings, excluding bonuses, were 7.8% higher than a year earlier during the three months to the end of August, the Office for National Statistics said today.

Business • 17 Oct 23

UK economic output grew by 0.2% in August from July, new figures show today

Sluggish UK economy grows by 0.2% in August - ONS

The UK economy partially recovered in August after a sharp drop in July but the bigger picture remained one of only sluggish growth after last year's surge in inflation and 14 back-to-back interest rate hikes by the Bank of England.

Business • 12 Oct 23