BANK OF ENGLAND EXPECTED TO HOLD INTEREST RATES – The next potential cut is anticipated for May, followed by further reductions in August and November
The Bank of England is expected to maintain interest rates at 4.5% on Thursday, reinforcing its cautious approach to gradual adjustments as it navigates economic uncertainty driven by U.S. trade policies and mixed domestic economic signals.
A recent poll of 61 economists indicated unanimous expectations that the central bank will keep rates steady, with the next potential cut anticipated in May, followed by further reductions in August and November.
While the UK economy has not significantly changed since the Bank’s last rate cut on February 6, U.S. President Donald Trump’s shifting tariff policies have unsettled global financial markets, raising concerns about inflation and economic stability worldwide.
Over the past two weeks, stock markets—particularly in the U.S.—have experienced sharp declines, with more than $5 trillion wiped off market values due to fears that Trump’s trade measures could push the U.S. into a recession.
In contrast, Germany’s announcement of a €500 billion infrastructure and defense investment plan has lifted manufacturing stocks, offering a positive counterpoint amid ongoing market volatility.
