Bank of England

Bank of England cautious about risks from expected dip in inflation

[LONDON] Bank of England chief economist Huw Pill said on Friday (Feb 6) that there was a risk that the central bank draws too much comfort from an expected fall in inflation in April, and that it was...

“We need to make sure that inflation stays there, so we’ve held rates unchanged at 3.75 per cent today,” Bank of England governor Andrew Bailey said.

Bank of England holds rates after narrow 5-4 vote, signals reduction ahead

It has been moving cautiously as Britain has the highest inflation rate among the world’s big, rich economies

Since Bank of England governor Andrew Bailey arrived in 2020, wage costs have jumped by 55% to more than £450 million.

Even the Bank of England is struggling to make ends meet

It is looking to re-initiate the sale of a London sports club and targets an 8% reduction in operating costs in the next financial year

Britain’s consumer price and services inflation rates ran slightly below those projected by the BOE in its November forecasts.

UK inflation rises by more than expected to 3.4%

Its inflation remains the highest in the Group of Seven, despite the country’s sluggish economic growth

Workers outside the headquarters of the Bank of England in London. The central bank is expected to cut rates to around 3.25 per cent this year.
OUTLOOK 2026

UK economy expected to grow 1.4% in 2026 despite weaker unemployment

The euro zone’s GDP is forecast to slow just slightly to 1.2% this year and inch upwards to 1.4% in 2027, said analysts

Federal Reserve chair Jerome Powell is at the centre of a US administration’s criminal probe about the renovation of the Fed’s headquarters.

Global central bankers defend Fed’s Powell after Trump threat

Central bankers fear that political influence over the Fed would erode trust in the bank’s commitment to its inflation target

The British central bank in 2025 launched its first stress test, of how the US$16 trillion global private equity and private credit industries would cope with a major financial shock, with results due in early 2027.

Bank of England might need new powers to assess private markets: lawmakers

This is if a landmark stress test fails to shed enough light on risks posed by the fast-growing but opaque market

Bank of England governor Andrew Bailey voted for a cut, tipping the balance on the committee.

Bank of England lowers rates after tight vote but signals caution about further cuts

Five MPC members vote to lower the benchmark rate for the fourth time in 2025 to 3.75%

Food and non-alcoholic beverage inflation dropped to 4.2% from 4.9% in October.

UK inflation slides to 3.2% before Bank of England rate decision

British inflation has been higher than in other major advanced economies

The figures were the first of a raft of key data that may tip the BOE (above) into resuming its interest-rate cutting cycle on Thursday.

UK unemployment rises as labour market eases ahead of BOE meeting

Wage growth excluding bonuses edge down to 4.6% from 4.7% in November