Interest rates LIVE: Andrew Bailey urged to hold off Bank of England hikes
The Bank of England will announce November’s Base Rate later today, marking the 16th meeting since December 2021.
While inflation remains significantly above the Government-set target of two percent, data suggests a growing sign of economic slowdown due to nearly two years of consecutive Base Rate hikes.
During the last meeting held in September, the Monetary Policy Committee (MPC), which is responsible for determining the rate, decided to maintain it at 5.25 percent in the wake of a surprise drop in August’s inflation rate, and analysts are recommending a similar decision this time.
Richard Campo, founder at London-based Rose Capital Partners said: “I’ll be shocked if the Bank of England does anything other than hold rates. With signs of core inflation easing, increasing arrears, defaults, repossessions and business failures, it would just heap more pain on people to raise rates, and the picture is far too uncertain to lower them.
“Money markets seem to agree with falls in both two and five-year SONIA swaps. The inflation data for October will be key, so until we see that, it would be very brave for the Bank of England to do anything other than hold.”
David Robinson, director and financial planner at Wildcat Law added: “Sometimes the best action is inaction, and in this case, a positive decision to do nothing is very much in order. While heavily criticised in the past months, the Bank of England has successfully halted Sterling’s death slide and, with it, cut the amount of “imported” inflation.
“The issues with the British economy will not be fixed by any decision Threadneedle Street can make but, by doing nothing, the Bank of England will at least ensure it isn’t making matters worse.”
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READ MORE: Calls for Base Rate reduction as ‘money and credit growth collapse’
Good morning from London. I’m Katie, I’ll be bringing you all the latest developments on the Bank of England’s Base Rate announcement. Please get in touch with me if you have a story or tips to share! Your thoughts are always welcome.
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