Bank of England Holds Interest Rate at 5%, US Fed Cuts
By Rediff Money Desk, London Sep 19, 2024 16:37
The Bank of England kept its main interest rate unchanged at 5% despite a US Fed rate cut, amid concerns about inflation. The bank is expected to cut rates again in November.
London, Sep 19 (AP) The Bank of England has kept its main interest rate unchanged at 5% despite a big cut from the US Federal Reserve, its first since the onset of the coronavirus pandemic more than four years ago.
The decision Thursday was widely expected amid ongoing concerns about inflation within the bank's monetary policy committee, particularly the elevated levels in the crucial services sector, which accounts for around 80% of the British economy.
Figures on Wednesday showed that inflation overall in the UK held steady at an annual rate of 2.2% in August, still above the bank's goal.
The bank, which last month cut interest rates for the first time since the pandemic, is widely expected to reduce borrowing costs again at its next meeting in November, especially as it will have details of the government's budget on Oct 30.
On Wednesday, the Fed cut its main interest by half of a percentage point to roughly 4.8% from a two-decade high of 5.3%, where it had stood for 14 months. It also signalled that there will be more cuts to come in the next few months.
The decision Thursday was widely expected amid ongoing concerns about inflation within the bank's monetary policy committee, particularly the elevated levels in the crucial services sector, which accounts for around 80% of the British economy.
Figures on Wednesday showed that inflation overall in the UK held steady at an annual rate of 2.2% in August, still above the bank's goal.
The bank, which last month cut interest rates for the first time since the pandemic, is widely expected to reduce borrowing costs again at its next meeting in November, especially as it will have details of the government's budget on Oct 30.
On Wednesday, the Fed cut its main interest by half of a percentage point to roughly 4.8% from a two-decade high of 5.3%, where it had stood for 14 months. It also signalled that there will be more cuts to come in the next few months.
Source: ASSOCIATED PRESS
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Srestha Finvest
- 0.89 ( 0.00)
- 69758135
- Standard Capital
- 1.26 ( -16.00)
- 55792425
- GTL Infrastructure
- 2.37 (+ 4.87)
- 50169700
- Vodafone Idea L
- 9.18 ( -1.50)
- 27130818
- Jaiprakash Power Ven
- 22.33 ( -2.45)
- 21183721
MORE NEWS
PM Internship Scheme: Over 1.55 Lakh Candidates...
Over 1.55 lakh candidates have registered for the Prime Minister Internship Scheme,...
PM Modi to Inaugurate ITU Telecom Standard Meet...
Prime Minister Narendra Modi will inaugurate the first-ever ITU telecom standard...
Wipro to Consider Bonus Shares Ahead of Q2 Results
Wipro's board will meet on October 16-17 to consider a proposal for issuing bonus...