BoE rate hold decision 'taken somewhat out of its hands' as inflation expectations shift

Interest rates held at 4.5%

Sorin Dojan
clock • 3 min read

The Bank of England (BoE) is stuck dealing with limited room to cut rates and spur growth as it remains “stuck between a rock and a hard place” due to persisting inflationary pressures, investors warned.

Their worries over worsening market conditions came after the Monetary Policy Committee (MPC) kept interest rates unchanged today (20 March) at 4.5%, citing uncertainty surrounding global trade policy and domestic price pressures. Bank of England halts interest rate cuts amid persistent inflation Expectations of further rate cuts this year have faltered as of late, with Lindsay James, investment strategist at Quilter, stating that markets are currently pricing in around two cuts for the rest of 2025, "mirroring expectations for the US". "The BoE will wish to avoid cutting rate...

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