PREVIEW

Bank Of England Expected To Hold Interest Rates. The Bank of England’s Monetary Policy Committee (MPC) is expected to keep interest rates on hold when it meets for the first time this year. After cutting the Bank rate from 4% to 3.75% in December, the MPC indicated that rates are "likely to continue on a gradual downward path.” The Bank rate is crucial in controlling inflation and influences the interest charged on loans and mortgages, as well as returns for savers. The majority of analysts predict the MPC will maintain the 3.75% rate during its decision announcement on Thursday at 12:00 GMT. Despite inflation staying above the target at 3.4%, there has been little data this year to shift the balance between inflation and weak economic growth. Analysts expect the Bank of England to remain vague about future rate cuts, with some predicting one rate reduction in 2026 and others suggesting two. The MPC is likely to wait for clearer signs on inflation before making further decisions.
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