Bank of England Holds Fire on Interest Rate Hikes Amid Inflation Concerns

A majority of economists polled by Reuters expect the Bank of England to keep its key interest rate unchanged at 4.75% through the end of 2024, signaling a cautious approach amid mixed economic signals.

The decision comes after a period of gradual easing earlier in the year, when the Bank cut rates from a peak of 5.25%. However, recent data on services inflation and wage growth have given policymakers reason to pause, as they seek to ensure that price pressures are fully contained.

Economists are closely monitoring the Bank's quarterly projections, due in February, for clues about the path of rates in 2025. A key factor will be the trajectory of services inflation, which has proven stickier than goods inflation.