December 26, 2024

Interest rate cut for only second time in more than four years but budget means inflation will rise, Bank says

 Interest rate cut for only second time in more than four years but budget means inflation will rise, Bank says

Interest rate cut for only second time in more than four years but budget means inflation will rise, Bank says

The Bank of England has forecast Rachel Reeves’ first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.