Central Banks

BOE Set to Keep Rates at 16-Year High as Inflation Cools

  • Decision due at 12 p.m. in London unlikely to shift guidance
  • Policy makers weigh when to shift toward reducing rates

The Bank of England (BOE) in the City of London.

Photographer: Betty Laura Zapata/Bloomberg
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The Bank of England is likely to keep interest rates at a 16-year high, giving more time for inflationary pressures to cool before it loosens up on the quickest tightening cycle in decades.

Economists and investors expect the nine-member Monetary Policy Committee to hold the key lending rate at 5.25% and also to leave in place guidance that opens the way for cuts in 2024 if key measures of inflation and wages continue to ease.