Bank of England, December 2024.
Sopa Images | Light Rocket | Getty Images
LONDON — The Bank of England concluded its final meeting of the year on Thursday by keeping interest rates on hold after British inflation rose to an eight-month high.
Economists generally expect to keep rates on hold at the December meeting as policymakers remain concerned Stubborn services inflation and wage growth.
The Bank of England has raised its key interest rate from 5.25% to 4.75% this year, twice by 25 percentage points.
Money markets this week scaled back bets on the pace of further rate cuts next year after November inflation and summer wage growth data, with around 50 basis points of cuts now expected, down from expectations for around 70 basis points of cuts on Monday. It’s worth it.
The Bank of England’s latest decision follows the Federal Reserve’s Cut interest rates by a quarter percentage point on Wednesday. While the rate cut itself was expected, traders were surprised when the central bank said it might only cut rates twice more in 2025.
This is a breaking news story and will be updated soon.
