S. Bank of England maintained interest rates on Thursday by 4.5 %Given that there are risks to the British economy in order to underestimate commercial and geopolitical uncertainty around the world and the ongoing inflation in the United Kingdom. The Monetary Policy Committee decided, with eight votes in favor of and fighting, to maintain fees, After reducing them from 4.75 % to the current level of 4.5 % at the February 6 meeting.
By explaining the decision, the commission stated that “uncertainty about the global trade policy may intensify,” due to the American tariff war, while “the other geopolitical uncertainty has increased fluctuations in financial markets.”
The body members have chosen wisdom in the face of the UK’s consumer price index (IPC), This increased to 10 months, with a maximum of 3 % in JanuaryApart 2.5 % in the previous month. The level of inflation in the UK is higher than the official goal of 2 %, which is the optimal bank of England.
The central bank has also evaluated the stability of the labor market, which recorded a 4.4 % unemployment rate in December, equivalent to the previous month, according to the data issued today by Office for National Statistics (ons). Wage growth has also been 5.9 % in the three months to January, at the highest level of April 2024, while job openings were raised for the first time since June 2022, as they grew by 1000 to 816,000 during this period.
The British economy is still weak despite the efforts of the labor government, whose political priority is to promote growth. the GDP (GDP) decreased by 0.1 % in JanuaryApproximately 0.4 % in December, due to the decrease in industrial production, according to the latest ons data.
The Keir Stmermer government is trying to provide public expenditures to maintain budget discipline, given the expectations that the Budget Office (OBR) reduces its economic views of the country in a new report on March 26. In this sense, the government announced on Tuesday a Reorganizing social benefits to encourage people with physical and mental health problems and those with disabilities to work If they are able to do this, with the provision of the expected country about 5 billion pounds (approximately 6 billion euros) by 2029-30.
The next monetary policy meeting of England is held on May 8.
