Today: 9 May 2025
3 November 2023
1 min read

Bank of England pauses interest rate hike

The BoE expects GDP to grow by 0.5 per cent this year, unchanged from its last forecast, but downgraded its outlook for 2024 from 0.5 per cent to 0 per cent…reports Asian Lite News

The Bank of England (BoE) on Thursday left its key interest rate untouched at 5.25 per cent, a day after the US Federal Reserve took the step to pause further hikes as global inflation eases.

However, the interest rate in the UK still remains the highest in more than 15 years, with the country reeling from the highest rate of inflation among the G7 advanced nations.

BoE Governor Andrew Bailey said it was “much too early” to think about cutting rates.

“We’ve held rates unchanged this month, but we’ll be watching closely to see if further rate increases are needed,” Bailey said in a statement.

The BoE expects GDP to grow by 0.5 per cent this year, unchanged from its last forecast, but downgraded its outlook for 2024 from 0.5 per cent to 0 per cent.

Holding the rate at 5.25 per cent will be positive news for homeowners as when the rates go up, the cost of borrowing increases.

The pause in the US Fed Reserve interest rate hike and now the BoE following in the same footsteps is expected to have a positive impact on the Indian stock markets and the rupee as foreign funds are less likely to exit.

The US Fed kept the benchmark lending rate between 5.25 per cent and 5.50 per cent.

The European Central Bank last week left Eurozone interest rates unchanged after raising them in each of its previous 10 meetings.

Inflation in the UK peaked at 11.1 per cent in October 2022, stoked by rising oil prices after the Ukraine war but has come down to 6.7 per cent since then.

ALSO READ-

Previous Story

‘Wagner group to deliver air defence weapons to Hezbollah’

Next Story

UK to ease post-Brexit travel rules for French school trips

Latest from -Top News

UAE, Uganda forge closer ties 

President of Uganda received H.H. Sheikh Abdullah bin Zayed; both countries have deepened ties with strategic agreements in energy, investment and digital innovation  In a significant diplomatic engagement aimed at expanding bilateral

Macron backs Syria sanctions shift 

 Diplomatic outreach, sanctions, reconstruction, and sectarian unrest shape Syria’s complex new chapter.  In a landmark visit signalling Syria’s first re-engagement with a European capital in over a decade, French President Emmanuel Macron

Singapore lauds UAE field aid

A Singaporean delegation visited the UAE Floating Hospital in Al-Arish, where they toured its various departments and were briefed on the medical and humanitarian services provided to patients arriving from the Gaza

Leaders hail new Pope

The UAE President expressed hope that the pontiff’s tenure would advance global harmony, peace, and interfaith understanding President His Highness Sheikh Mohamed bin Zayed Al Nahyan has extended warm congratulations to Cardinal

UAE calls for calm

Sheikh Abdullah bin Zayed Al Nahyan, UAE’s Minister of Foreign Affairs, urged Inda and Pakistan to “exercise restraint” and avoid further escalation that could imperil regional and global peace The United Arab
Go toTop

Don't Miss

Interest rate rise expected after inflation shock in UK

Influential think tank the Institute for Fiscal Studies (IFS) warned

Bank of England set for interest rate decision

In addition to that thorny problem, a number of factors