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Deloitte comments on today's interest rate decision

Commenting on today’s interest rate decision from the Bank of England, Ian Stewart, chief economist at Deloitte, said:

“For all the good news on energy and food prices, inflation is not beaten. The balance of argument is edging slowly towards rate cuts, but the Bank cannot risk cutting rates and then having to raise them again as inflation revives.

“To reach that conclusion, the Bank needs to see more signs that wage pressures and core inflation are under control. We expect the first rate cut to come around the middle of the year, with rates ending 2024 around the 4.5% mark.”