The Bank hikes interest rates again – but the end of the pain could finally be in sight
The cycle of rate rises is coming to an end – it will be all eyes on inflation and wages to determine how quickly they go into reverse, writes James Moore
“Are we nearly there yet?”
Mortgage holders, small businesses and just about anyone with an interest in the future health of the UK economy could be forgiven for copying the child’s traditional car journey complaint at the Bank of the England’s Threadneedle Street HQ. And loudly.
After the fourteenth consecutive UK interest rate rise – by 0.25 percentage points to 5.25 per cent this time – it’s fair to say that we might be at the beginning of the end as regards this interest rate cycle. But we’re not quite there yet. Sorry, but that means there may be a couple more small rate rises to come. It all depends on the next couple of inflation releases and how closely they conform to expectations.
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