London – The Bank of England maintained its main interest rate of the United Kingdom without changes in 4.50% on Thursday despite the fact that the economy is barely growing and the nation faces more uncertainty in the light of the Tariff policies be promulgated by the Trump administration in the United States
The non -members’s monetary policy committee decision was widely expected, and occurs one day after the United States Federal Reserve also kept interest rates without changes.
The minutes of the meeting showed that eight members voted to maintain policy without changes, and one supports a reduction of a quarterfinal.
The fees fixing panel has reduced the main rate of the Bank of England from a maximum of 16 years of 5.25% in a room of percentage three times since last August, more recently in February, after inflation fell from the maximum of multiple decades of more than 10% reached the acute peak wave in energy prices after the invasion of Russia in the invasion of Ukraña in early 2022.
However, Inflation, 3%It remains above the goal of 2% of the bank and is ready to push higher in the coming months, even without counting the rates imposed by the Trump administration. Many economists think they could increase to 4% in the coming months, since companies increase prices as a result of a large increase in the minimum wage and the highest payroll taxes.
“There is a lot of economic uncertainty at this time,” said Bank Governor Andrew Bailey. “We still think that interest rates are gradually in decline, but today we have kept them in 4.5%.”
If the policy formulators continue to pursue their recent gradual approach, then it is likely that another cut is in May, when they will be armed with the latest economic projections of the bank and the governor of the Andrew Bailey Bank Bailey celebrates a press conference.
Bailey said that rates setting “will look closely closely how global and national economies” and what happens, “is our work to ensure that inflation remains low and stable.”
He United States Federal ReserveThat he kept the indebtedness rates without changes on Wednesday, he also expressed uncertainty about the short -term economic perspective, particularly in the light of the tariff policies of US President Donald Trump, that economists worry that they would reduce global growth and lead to an increase in prices.
The British economy, the largest sixth, obtained a modest growth of 0.1% in the fourth quarter, a greatly disappointing result for The new Labor Governmentwhich has made the increase in growth its number one economic policy. Since the global financial crisis in 2008-2009, the growth performance of the British economy has been significantly below its long-term average.
Critics say that the boss of treasure, Rachel Reeves, is partially responsible for the gloomy economic news since work returned to power in July after 14 years, because she was too descending to assume her role and since then she has done so. Tax increaseparticularly in companies.
Reeves, who on March 26 will deliver an acute vision statement on the state of public finances to legislators, will expect the Bank of England to reduce the indebtedness rates more in the coming months, since it probably helps to underpin growth.
Economists said that Bank’s latest update did little to clarify the prospects, although most said that an additional a quarter -point reduction in May remained on the cards.
“But beyond that, a lot will depend on the commercial policy outside the United States and the fiscal ads from the Chancellor,” said Luke Bartholomew, deputy director of the ABERDEN asset management firm.
