Snapshot 3:Thu, Nov 7, 2024 8:53:38 PM GMT last edited by MattKalman

UK: Bank of England Cuts Interest Rates to 4.75%

Published NOV 7 2024

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Above: The Bank of England holds the central bank's Monetary Policy Report press conference Nov. 7, 2024. Image credit: Henry Nicholls/WPA Pool via Getty Images

The Spin

TheThis BoE's decision toshows cutconfidence interestin ratesChancellor after last week's budget is a sign of confidencethe inExchequer Rachel Reeves's pro-growth economic plan. WhilstWhile some will inevitably complain, and it is a well-known fact that the UK economy is in dire need of substantial overhaul, the Labour Governmentgovernment has taken theits 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, but 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's 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.