The Bank of England is widely expected to keep its main interest rate at a 16-year high Thursday, rejecting a cut as inflation remains well above target despite recent slowing.
Analysts predict that the BoE will keep borrowing costs at 5.25 percent, one day after official data showed UK annual inflation slowing to its lowest rate since September 2021. In a busy week for central banks, the Federal Reserve on Wednesday held US interest rates steady, but left open the door to three interest rate cuts before the end of the year.
Market watchers are forecasting the Fed and European Central Bank to start cutting rates in June, while the outlook for the BoE appears less clear.—AFP
