Reeves Eases Path to Bank of England Cut With Budget Moves

Rachel Reeves cleared the path for the Bank of England to resume cutting interest rates next month, even though her budget was less inflation-battling than had been expected only a few weeks ago.

The Chancellor of the Exchequer said her fiscal plans would ease the country’s inflation woes, with UK price growth still the highest in the Group of Seven. Reeves’ package — including a freeze on rail fares, another year of relief for drivers on fuel duty and measures to cut household energy bills — will knock as much as 0.5 percentage points off inflation in the second quarter of next year, according to the Office for Budget Responsibility.