How local Accountants in Central London can help: In its latest meeting, the Bank of England (BoE) chose to keep interest rates steady at 4% , signalling that while inflation may be easing, the economy is not yet in the clear. Alongside holding rates, the BoE has also slowed down its quantitative tightening program , reducing the pace of bond sales and maturing holdings from £100 billion to £70 billion over the coming year. Financial Times +2 Reuters +2 Why This Decision? Persistent Inflation Risks Inflation in the UK remains at about 3.8% , almost twice the Bank’s 2% target. While some of the drivers are cooling, elements like wages, services, and food prices remain sticky. The BoE seems wary of pulling back too quickly in case inflation reaccelerates. Market Stability & Bond Market Concerns The QT program (selling government bonds or letting them mature without replacement) has impacts on government bond yields (gilts). Aggressive QT has contributed to volatility,...
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