Published: 16/01/2025
The Bank of England will probably reduce the base interest rate next month, experts believe, after inflation surprised many by dropping to 2.5%.Bets are back on for an interest rate cut next month after inflation surprised many commentators by dropping to 2.5%.
The Bank of England is set to announce its latest decision on 6 February, with economists now saying a cut from the current rate of 4.75% is more likely.
Surprised
Many experts were surprised by the inflation fall in December from 2.6% the previous month, announced by the Office for National Statistics (ONS) yesterday.
And Stock Market traders are now reported to be saying there is an 85% chance of a base rate reduction to 4.5% in February, according to the Daily Telegraph.