Deloitte comments on today's Bank of England interest rate decision
Commenting on today’s Bank of England interest rate decision, Debapratim De, director of economic research at Deloitte, said:
“The labour market has softened significantly but wage growth remains strong. That, alongside December’s higher-than-expected inflation reading, suggests underlying price pressures have yet to fully dissipate. Given this backdrop, it was almost inevitable that the Bank of England would hold its policy rate at 3.75%. Nonetheless, many consumers still stand to benefit from earlier rate cuts, which have significant lags in their pass-through to the wider economy.
“We expect the labour market to slacken further, with unemployment rising to 5.7% by autumn, and headline inflation to fall sharply over the summer months. This should create room for two further 25-basis-point rate cuts this year, with the first cut coming in June.”
ENDS
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our people deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide make an impact that matters at www.deloitte.com.