MarketPR
The Bank of England is expected to leave rates unchanged on Thursday, a decision that lands even as U.K. inflation has climbed to 3.1% and energy costs continue to press prices higher.
The hold would put the Bank against the direction of the U.S. Federal Reserve, which has been raising rates. Energy costs sit at the center of this.
has an energy source, and energy feeds through supply chains and into broader prices in ways that tighter borrowing costs do not directly resolve. The Bank appears to be making that call.
A hold at 3.1% reads as a judgment that the policy tool does not fit the source of the problem. The Federal Reserve has reached a different conclusion, moving rates higher.
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