Latest Forecast: UK Interest Rates Likely to Remain Stable at 5.25%

Money | June 20, 2024, 3:54 a.m.

The Bank of England is expected to maintain interest rates at 5.25%, marking the seventh consecutive time without a change. Despite inflation reaching the target level for the first time in three years, economists do not anticipate a rate cut soon. There is speculation that the Bank will monitor inflation's stability at 2% before considering any adjustments, making a rate cut in the autumn more probable than in the summer. With the general election approaching, economic policies are a significant battleground among political parties. The Bank's mission is to stabilize inflation at 2%, which has led to a prolonged period of high interest rates to curb inflationary pressures. Financial experts believe a rate cut during the election period is unlikely, with the focus shifting to the August meeting for a potential adjustment in rates.