Bank of England supports rates by 4.5%

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The Bank of England has retained interest rates at 4.5 percent, leaving the door open for further reduction this year, as it is fighting both world trade and constant pressure on prices in the UK.

The Central Bank’s Central Bank’s committee voted for eight to leave its benchmark unchanged, as it reiterated plans for a “gradual” approach to a greater reduction.

Swati Dhingra, an external MPC member and perennial dove, voted in favor of reducing the bids in a quarter of points.

“There is a lot of economic uncertainty at the moment,” said Andrew Bailey, the governor Bo. He added that while the bank occupied 4.5 percent, “we still believe that interest rates are gradually declining.”

A As In the coming months, he confronts a delicate balancing because he evaluates evidence of the economy that has and weakens the job market against the prospects of a pickup personality.

The protocol at the meeting this week leaves open the possibility of reducing the rate when MPC is convened in May, but did not give a strong signal about the likelihood of moving.

“There was no presumption that the monetary policy was on the way to the installation over the next few meetings,” the protocol said. MPC added that it was focused not only on whether it could increase global and domestic uncertainty depending on demand, but also if wages in the UK and pressure on prices may be more persistent than expected.

The decision on Thursday took place on a quarter -reduction last month, when Boe also halved the growth estimate in 2025 to 0.75 percent.

“We will look very closely at how world and domestic economies develop at each of our six-week rates,” Bailey said. “Whatever happens, this is our task to make sure that inflation remains low and stable.”

The Bank believes that consumer prices will accelerate up to 3.75 percent at the end of this year compared to 3 percent in January – much higher than the 2 percent goal.

But the Boe agents survey, published on Thursday, showed that more companies that report that they freeze and potentially prepare for job reduction if the UK growth is unable to pick up.

“The Bank of England is stuck between a rock and a heavy inflation, which is intensified with the weak growth prospect,” said Zara Knox, World Jpmorgan Asset Management analyst.

Decision of uncertainty are signs of growth of economic damage from US President Donald Trump’s trade war and spending prospects in the spring statement next week Rachel Reivz.

The Pooja Kumra, the TD Securities strategist, said the Riva statement, presenting a significant risk. “Further cuts from the government (offer) a terrible picture of growth in the UK,” Kumra said. “This should support at least a quarterly rate of reducing Boe rates.”

MPC is worried that the job market will deteriorate further, but also became more pessimistic about the speed at which the UK economy can grow without inciting pressure.

Figures published earlier on Thursday Wage growth remains strong5.9 percent of the annual rate three months before January, excluding bonuses.

But BOE’s poll emphasized the weakening of the labor market trends.

“Employment intentions have become negative after the last round, and more firms reports that they stop or freeze, and they say they can look for jobs if the forecast does not improve,” the agents said.

The likelihood of reducing the interest rate in May decreased slightly below 50 percent, from approximately 60 percent a day, depending on the levels provided for by Svopi markets. By the end of the year, traders continued to wait for two cuts.

Catherine Mann, an external member of the IPC, who voted in half the points in February, entered most committees, deciding to keep rates of 4.5 percent.

The two -year gilded yield, sensitive to speed, increased to 4.17 percent, with a minimum by 4.15 percent earlier that day.

The pound was flat after a $ 1.296 decision, 0.3 percent per day.