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
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