Latest news with #EllieHenderson
Yahoo
7 hours ago
- Business
- Yahoo
Bank of England expected to hold rates at 4.25 per cent
The Bank of England is expected to hold interest rates at 4.25 per cent after inflation jumped in April and policymakers remain 'nimble' to the evolving economic backdrop. Most economists think the Bank's Monetary Policy Committee (MPC) will opt to keep rates on hold when it meets on Thursday. The MPC has voted to cut rates at every other meeting since it started easing borrowing costs last August, from a peak of 5.25 per cent. This has been possible while the rate of UK inflation has been steadily falling from the highs reached in 2023, at the peak of the cost-of-living crisis. However, inflation jumped to its highest level for more than a year in April, according to the latest figures from the Office for National Statistics (ONS). Consumer Prices Index (CPI) inflation hit 3.5 per cent in April, up from 2.6 per cent in March. Since releasing the data, the ONS said that an error in vehicle tax data collected meant the April figure should have been 3.4 per cent. Ellie Henderson, an economist for Investec, said monetary policy 'seems to be in a good position, allowing the Bank of England to wait and see how economic conditions and the international political backdrop evolve'. 'Ultimately, this is a highly uncertain time that requires a potentially nimble response from central banks, limiting any great foresight,' she said. 'Although the June decision might seem clear cut, how the MPC responds to the evolving economic backdrop thereafter much depends on the details of the world in which we find ourselves.' On Friday, oil prices were soaring after Israel launched an attack on Iran's nuclear programme, raising anxieties about possible disruption to the supply of the commodity in the Middle East. And ongoing uncertainty over US President Donald Trump's tariffs, which surveys suggest have dampened business confidence and reduced exports, also remains in focus for policymakers. Meanwhile, new official figures showed wage growth for UK workers eased sharply in the three months to April and the unemployment rate increased, as employers feel the effects of higher costs. Rob Wood and Elliott Jordan-Doak, economists for Pantheon Macroeconomics, said a weaker jobs market 'will reassure the MPC that it can plan on further rate cuts', but added that 'one month's data is far from enough to allow the MPC to bin its 'gradual and careful' approach to easing monetary policy.' Bank chief economist Huw Pill, who is also an MPC member, said last month that he thought rates had been cut too quickly partly due to the risk of 'stubbornly strong' pay growth on overall inflation. New UK inflation figures for May will be released on Wednesday, while the US central bank is also widely expected to keep its interest rates on in to access your portfolio
Metro
17 hours ago
- Business
- Metro
Interest rates predicted to stay at 4.25%
The UK interest rates are set to remain the same amid worldwide uncertainty and rising inflation. The interest rate is set to stay at 4.25% following a jump in inflation in April. Interest rates determine how much money people have to pay on loans or mortgages from a bank or a credit card. This means home buyers eyeing up a property cannot expect the cost of borrowing to be slashed when the Bank of England decides on the interest rate figure on Thursday. The decision will be made by the Bank of England's monetary policy committee (MPC) next week. It has voted to cut the rates at every meeting previously since it started easing borrowing costs last August. The current rate has reduced from the earlier 5.25% at the height of the cost of living crisis. British consumers faced the highest prices in 2023 during the height of the cost-of-living crisis, which is still gripping the country. There was light at the end of the tunnel until inflation surged to its highest level for more than a year in April, the latest figures from the Office for National Statistics show. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March. The ONS said the April figure should have been 3.4 due to an error in vehicle tax collection. Ellie Henderson, an economist for Investec, said monetary policy 'seems to be in a good position, allowing the Bank of England to wait and see how economic conditions and the international political backdrop evolve.' 'Ultimately, this is a highly uncertain time that requires a potentially nimble response from central banks, limiting any great foresight,' she said. 'Although the June decision might seem clear cut, how the MPC responds to the evolving economic backdrop thereafter much depends on the details of the world in which we find ourselves.' Markets are bracing for potential turmoil after the escalating tension between Israel and Iran, which saw missiles being fired at sites in both countries. More Trending The tension could have an impact on oil prices. Meanwhile, the UK job market is seeing wage growth ease heading into April, while the unemployment rate grew as employers faced higher costs. Rob Wood and Elliott Jordan-Doak, economists for Pantheon Macroeconomics, said the weaker job market could be a factor in reassuing the Bank of England's committee that 'it can plan on further rate cuts.' View More » But they said one month's fresh data 'is far from enough to allow the MPC to bin its gradual and careful approach to easing monetary policy.' Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. MORE: 5 forgotten items in your attic that could be worth over £11,000 MORE: Credit card customers can save up to £1,679 with a simple debt 'spring clean' MORE: I've got 'number dyslexia' – but I'm a financial expert Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
North Wales Chronicle
a day ago
- Business
- North Wales Chronicle
UK interest rates predicted to stay at 4.25% with Bank ‘nimble' amid uncertainty
Most economists think the Bank of England's Monetary Policy Committee (MPC) will opt to keep rates on hold when it meets on Thursday. The MPC has voted to cut rates at every other meeting since it started easing borrowing costs last August, from a peak of 5.25%. This has been possible while the rate of UK inflation has been steadily falling from the highs reached in 2023, at the peak of the cost-of-living crisis. However, inflation jumped to its highest level for more than a year in April, according to the latest figures from the Office for National Statistics (ONS). Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March. Since releasing the data, the ONS said that an error in vehicle tax data collected meant the April figure should have been 3.4%. Ellie Henderson, an economist for Investec, said monetary policy 'seems to be in a good position, allowing the Bank of England to wait and see how economic conditions and the international political backdrop evolve'. 'Ultimately, this is a highly uncertain time that requires a potentially nimble response from central banks, limiting any great foresight,' she said. 'Although the June decision might seem clear cut, how the MPC responds to the evolving economic backdrop thereafter much depends on the details of the world in which we find ourselves.' On Friday, oil prices were soaring after Israel launched an attack on Iran's nuclear programme, raising anxieties about possible disruption to the supply of the commodity in the Middle East. And ongoing uncertainty over US President Donald Trump's tariffs, which surveys suggest have dampened business confidence and reduced exports, also remains in focus for policymakers. Meanwhile, new official figures showed wage growth for UK workers eased sharply in the three months to April and the unemployment rate increased, as employers feel the effects of higher costs. Rob Wood and Elliott Jordan-Doak, economists for Pantheon Macroeconomics, said a weaker jobs market 'will reassure the MPC that it can plan on further rate cuts', but added that 'one month's data is far from enough to allow the MPC to bin its 'gradual and careful' approach to easing monetary policy.' Bank chief economist Huw Pill, who is also an MPC member, said last month that he thought rates had been cut too quickly partly due to the risk of 'stubbornly strong' pay growth on overall inflation. New UK inflation figures for May will be released on Wednesday, while the US central bank is also widely expected to keep its interest rates on hold.
Powys County Times
a day ago
- Business
- Powys County Times
UK interest rates predicted to stay at 4.25% with Bank ‘nimble' amid uncertainty
UK interest rates are set to stay at 4.25% after inflation jumped in April and policymakers remain 'nimble' to the evolving economic backdrop, economists have predicted. Most economists think the Bank of England's Monetary Policy Committee (MPC) will opt to keep rates on hold when it meets on Thursday. The MPC has voted to cut rates at every other meeting since it started easing borrowing costs last August, from a peak of 5.25%. This has been possible while the rate of UK inflation has been steadily falling from the highs reached in 2023, at the peak of the cost-of-living crisis. However, inflation jumped to its highest level for more than a year in April, according to the latest figures from the Office for National Statistics (ONS). Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March. Since releasing the data, the ONS said that an error in vehicle tax data collected meant the April figure should have been 3.4%. Ellie Henderson, an economist for Investec, said monetary policy 'seems to be in a good position, allowing the Bank of England to wait and see how economic conditions and the international political backdrop evolve'. 'Ultimately, this is a highly uncertain time that requires a potentially nimble response from central banks, limiting any great foresight,' she said. 'Although the June decision might seem clear cut, how the MPC responds to the evolving economic backdrop thereafter much depends on the details of the world in which we find ourselves.' On Friday, oil prices were soaring after Israel launched an attack on Iran's nuclear programme, raising anxieties about possible disruption to the supply of the commodity in the Middle East. And ongoing uncertainty over US President Donald Trump's tariffs, which surveys suggest have dampened business confidence and reduced exports, also remains in focus for policymakers. Meanwhile, new official figures showed wage growth for UK workers eased sharply in the three months to April and the unemployment rate increased, as employers feel the effects of higher costs. Rob Wood and Elliott Jordan-Doak, economists for Pantheon Macroeconomics, said a weaker jobs market 'will reassure the MPC that it can plan on further rate cuts', but added that 'one month's data is far from enough to allow the MPC to bin its 'gradual and careful' approach to easing monetary policy.' Bank chief economist Huw Pill, who is also an MPC member, said last month that he thought rates had been cut too quickly partly due to the risk of 'stubbornly strong' pay growth on overall inflation.
South Wales Guardian
a day ago
- Business
- South Wales Guardian
UK interest rates predicted to stay at 4.25% with Bank ‘nimble' amid uncertainty
Most economists think the Bank of England's Monetary Policy Committee (MPC) will opt to keep rates on hold when it meets on Thursday. The MPC has voted to cut rates at every other meeting since it started easing borrowing costs last August, from a peak of 5.25%. This has been possible while the rate of UK inflation has been steadily falling from the highs reached in 2023, at the peak of the cost-of-living crisis. However, inflation jumped to its highest level for more than a year in April, according to the latest figures from the Office for National Statistics (ONS). Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March. Since releasing the data, the ONS said that an error in vehicle tax data collected meant the April figure should have been 3.4%. Ellie Henderson, an economist for Investec, said monetary policy 'seems to be in a good position, allowing the Bank of England to wait and see how economic conditions and the international political backdrop evolve'. 'Ultimately, this is a highly uncertain time that requires a potentially nimble response from central banks, limiting any great foresight,' she said. 'Although the June decision might seem clear cut, how the MPC responds to the evolving economic backdrop thereafter much depends on the details of the world in which we find ourselves.' On Friday, oil prices were soaring after Israel launched an attack on Iran's nuclear programme, raising anxieties about possible disruption to the supply of the commodity in the Middle East. And ongoing uncertainty over US President Donald Trump's tariffs, which surveys suggest have dampened business confidence and reduced exports, also remains in focus for policymakers. Meanwhile, new official figures showed wage growth for UK workers eased sharply in the three months to April and the unemployment rate increased, as employers feel the effects of higher costs. Rob Wood and Elliott Jordan-Doak, economists for Pantheon Macroeconomics, said a weaker jobs market 'will reassure the MPC that it can plan on further rate cuts', but added that 'one month's data is far from enough to allow the MPC to bin its 'gradual and careful' approach to easing monetary policy.' Bank chief economist Huw Pill, who is also an MPC member, said last month that he thought rates had been cut too quickly partly due to the risk of 'stubbornly strong' pay growth on overall inflation. New UK inflation figures for May will be released on Wednesday, while the US central bank is also widely expected to keep its interest rates on hold.
