Share Prices & Company Research

News

07 November 2019

Interest rates and CPI remain the same

Today, the Bank of England’s Monetary Policy Committee (MPC) majority voted (7-2) to hold interest rates at the current 0.75%. The other two members, Jonathan Haskel and Michael Saunders, voted for a cut on the basis that “core inflation was subdued” and “persistent Brexit uncertainty” justified such an action. The BoE further stated that if growth remains weak, interest rates will have to be reduced further. Conversely, if growth begins to recover, as the Bank predicts, then interest rates will be pushed to counter inflation.
Meanwhile, September’s Consumer Price Index (CPI) remained at the current level of 1.7%, which is below the BoE’s target of 2%. This is expected to fall further, as the BoE is currently forecasting a CPI of 1.25% by spring 2020, given the reduction in energy and water prices. Meanwhile, labour costs have increased at a rate of 3.7% over the year, which could help counter the effects.
 
Interest rates and CPI remain the same

More News Stories

Newsletter sign up
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.