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Interest rates live: Bank of England holds interest rates and downgrades growth in blow for Labour


Published on 2024-12-19 11:20:50 - MSN
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  • Bank of England holds interest rates and downgrades growth in blow for Labour - The Bank's Monetary Policy Committee voted by a majority of 6-3 to maintain the rate at 4.75 per cent

The Bank of England has decided to maintain the current interest rate at 5.25%, marking the seventh consecutive meeting without a change. This decision comes amidst a backdrop of economic challenges, including a downgrade in the UK's growth forecast. The Monetary Policy Committee (MPC) voted 8-1 to keep rates steady, with one member advocating for a rate cut. The Bank revised its growth forecast downwards, now expecting the UK economy to grow by 0.5% this year, a decrease from the previously anticipated 0.75%. This adjustment reflects concerns over persistent inflation, which, although expected to decrease, remains above the target. The decision to hold rates is seen as a cautious approach to manage inflation while supporting economic recovery, impacting sectors like housing and potentially influencing political parties' economic strategies, particularly Labour, as the UK approaches an election.

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