Snapshot 2:Thu, Nov 7, 2024 4:24:03 PM GMT last edited by TylerJ

UK: Bank of England Cuts Interest Rates to 4.75%

Published NOV 7 2024

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Above: Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey and The Bank of England's Head of Media and Stakeholder Engagement Katie Martin hold the central bank's Monetary Policy Report press conference Image credit: Henry Nicholls - WPA Pool/Getty Images

The Spin

The BoE's decision to cut interest rates after last week's budget is a sign of confidence in Rachel Reeves's pro-growth economic plan. Whilst some will inevitably complain, and it is a well-known fact that the UK economy is in need of substantial overhaul, the Labour Government has taken the first steps in leading the country back in the right direction and will only benefit from another interest rate cut.

Guardian

The BoE's analysis is clear: although good progress has been made to reduce inflation, Reeves's high cost agenda is at risk of undoing the hard work of the last two years. Given Labour's spending obsession, it is likely now that Bailey and the BoE will have to slow down interest rate cuts even further, placing greater financial pain onto millions of homeowners and working people who have been promised financial relief.

The Telegraph

Metaculus Prediction

There is a 35% chance that the UK will achieve an average GDP growth rate of 2.5% over the current parliamentary term, according to the Metaculus prediction community.