The Bank of England says about the adoption of a cautious approach to the new discounts due to economic uncertainty
The Bank of England maintains a rate expenses 4.50 % on Thursday (20.MAR.2025) and warned against the assumptions that it will be cut in the following meetings as is the case with deep uncertainty that hangs over British and global economies. here harsh From the statement (PDF – 177 KB).
Monitor the climbing of the global trade tensions that the states started unitedS, the Monetary Policy Committee voted 8-1 to preserve it expenses. Only Swati Dhunggra voted to reduce 0.25 percentage.
Economists who have been consulted before Reuters It is often expected to maintain 7-2 votes expenses. “There is a lot of economic uncertainty at the present time.”Bank President Andrew Billy said in a statement.
He stated that the central bank still believes that the rate was on a gradual diminishing path, but it would be analyzed “It is close to how global and local economies develop in every meeting of our meetings.”.
The Monetary Policy Committee said it still expects inflationary pressure to continue to decline, however “There is no assumption that monetary policy is in a pre -determined path in the following meetings.”.
All 61 economists are interviews with Reuters Before the March meeting of England Bank, provided that it maintains a rate expenses At 4.5 %, with the next reduction maybe in May and other cuts in August and November.
The committee repeated its guidelines that were presented in February that it was adopting a “A gradual and accurate approach” For new discounts in expenses.
I mentioned that the uncertainty in the global trade policy is intensifying after the United States unitedThey announced a series of import tariffs that caused revenge on some other countries.
On Wednesday (19.MAR), the Federal Reserve (Federal Reserve, the US Central Bank) cut US economic growth predictions for this year, and sparked inflation and said that the uncertainty that attached to the economy has increased. I also maintained expenses.
The Bank of England said that “Other geopolitical uncertainty cases have increased.” And note the German loan plans.
The committee said that the imminent increase in British government taxes for employers was behind the increase in the services sector, and noticed research indicating weakness in the employment of companies.
The central bank has slightly increased its expectations for inflation this year, which is now 3.75 % in the third quarter, slightly higher than February 3.7 %.
The central bank also increased its appreciation for the economic growth of Kingdom united In the first three months from 2025 to 0.25 %, compared to the previous projection of 0.1 %.
Written by William Shomberg and Soban Abdullah.
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