As scheduled monthly, the Bank of England is scheduled to release the Official Bank Rates on Thursday, December 14, 2023, at 4:00 PM, GMT+4 (Dubai Time). It is expected that the Bank of England is likely to keep the rate steady at 5.25%.
The UK’s yearly Inflation YoY has been witnessing a decline, dropping from a rate of 11.1% in October 2022 to 4.6% in December 2023 (Figure 1). This suggests previous aggressive rate hikes made by the Bank of England have cooled inflation.
Policymakers, like Governor Andrew Bailey and Chief Economist Huw Pill, have consistently stressed more than once that it is soon to talk about rate cuts. However, more hawkish members have voiced concerns about the potential persistence of inflationary pressures.
Figure 1: United Kingdom Inflation Rate YoY, trading.view
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