Economic Buzz: Bank of England cuts rates, says there has been continued progress in disinflation
07-Nov-2024
17:52
The Monetary Policy Committee (MPC) of the Bank of England (BOE) voted by a majority of 8'1 to reduce Bank Rate by 0.25 percentage points, to 4.75%. One member preferred to maintain Bank Rate at 5%. There has been continued progress in disinflation, particularly as previous external shocks have abated, although remaining domestic inflationary pressures are resolving more slowly, BOE noted. CPI inflation fell to 1.7% in September but is expected to increase to around 2'% by the end of the year as weakness in energy prices falls out of the annual comparison. Services consumer price inflation has declined to 4.9%. The central bank had cut rates by 25 basis points in August, pulling them off a decade a half high.
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