Today, the Bank of England has driven supplications for interest rates, in the midst of fears that inflation is still a threat.
The Monetary Policy Committee has announced that the basic rate will be held 4.5 percent after the last meeting.
This morning, the members had received more grounds with figures with wages that are still rising at the highest level since last April.
And eight voted to pause the level, with only one back -one reduction. The pound immediately tapped the US dollar on the news, with markets in a slower downward route for rates.
The concern about the broader image in the economy, however, will be deeper, with the job market in force even before the raid of Labor's National Insurance – and the pace of Donald Trump's trade war meeting.
The ghost of so -called 'stagflation' has appeared again with bodies such as the OECD that joins the couch when cutting growth reasons.
Rachel Reeves responded to the rates by acknowledging that there is still “work to do to alleviate the costs of living.”
The Chancellor will deliver a crucial spring statement next week while struggling to balance the books.
Mrs. Reeves has indicated that there will be no tax changes for the time being – so that she has to fill an estimated £ 15 billion black hole in finances with cuts.
That only partially ran under the curbs for benefits that the government announced earlier this week.
BOE -Governor Andrew Bailey would like to emphasize that the committee wants to follow a 'gradual and careful approach' to lower the rates and at the same time check changes in the UK and the global economy
The pound immediately tapped the US dollar on the news, with markets in a slower downward route for rates
The MPC has gradually been borrowing the loan costs since August, so that the pressure on some borrowers can offer that lower mortgage interest rate.
This was helped by the inflation that fell steadily from the highlights that were reached in 2023, when the crisis of the costs of living peaked.
But the governor of the Bank Andrew Bailey would like to emphasize that the committee wants to follow a 'gradual and careful approach' to lower the rates and at the same time follow changes in the UK and the global economy.
Mr Bailey said today: 'There is a lot of economic uncertainty at the moment.
'We still think that the interest rates are on a gradually falling path, but we kept them at 4.5 percent today.
'We will look very carefully at how worldwide and domestic economies evolve during each of our six -week meetings for setting up a rate.
“Whatever happens, it is our job to ensure that inflation remains low and stable.”
CPI rose to 3 percent in January, with the price pressure mainly driven by energy prices, water accounts and bust rates.
At the same time, the British economy has put on the edge of the decline – with GDP in January by 0.1 percent lower – and effectively quiet with 0.1 percent expansion during the last three months of the year.
The OECD warned this week that 'further fragmentation of the global economy' was a considerable care in the midst of trade tensions that were fueled by Mr Trump.
It said that that would probably increase inflation around the world and have an impact on the standard of living.
The figures from us this morning showed that the regular average annual wage growth in the three months to January was no more than 5.9 percent, and remain at the highest level since the three months to April last year.
Wages surpassed the CPI inflation with 3.2 percent, the us added.
Mrs Reeves said after the bank's announcement: 'We have had three tariff reductions since the summer, but there is still work to be done to alleviate the costs of living.
'That is why I fight every day to place more money in the pockets of working people to deliver our plan for change, and why we pay employees without the rise in national insurance policies, income tax or VAT, the national living wage increased and fuel obligation is froze.
“In a changing world, I am determined to go further and faster to start growth and bring a new era of stability, safety and innovation that protects working people and keeps our country safe.”
But shadow Chancellor Mel Stride said: 'Interest rates that will stay higher for longer will mean higher mortgages for millions of people throughout the country.
'Due to the budget of Rachel Reeves, inflation is above the target of the Bank of England, making it more difficult to lower interest rates.
“Next week, during her emergency budget, the Chancellor must take responsible steps on expenditure, borrowing and debts to enable the Bank of England to lower interest rates.”
The us told us that the regular average annual wage growth in the three months to January was unchanged at 5.9 percent, and remained at the highest level since the three months to April last year
Donald Trump has threatened rates for trading partners in an attempt to force his policy agenda
