Bank of England Cuts Interest Rates to 4.75% but Warns of Slight Inflation Rise Ahead
Written by Kyoka Omori on 7th November 2024
Photo credit: Marek Slusarczyk / Alamy Stock Photo
The Bank of England has announced a second interest rate cut this year, lowering it to 4.75%, following a drop in September’s inflation rate to 1.7%.
The inflation rate has been falling since it reached the peak of 11.1% in October 2022. The bank has maintained high rates to manage and reduce the inflation rates. The latest one is 1.7% and it is lower than the target of 2% that the government set.
The Bank of England states: “We need to be careful not to cut rates too much or too quickly, so that inflation remains low and stable for years to come.”
Photo credit: Robert Evans / Alamy Stock Photo
The organisation expects that if inflation stands low and stable, interest rates will be cut further. However, it foresees that the rates rise to about 2.75% by the second half of next year and it is predicted to drop back to 2% after that.
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