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BoE Holds Rates at 3.75% in Split Vote; ECB Steady at 2%

BoE Holds Rates at 3.75% in Split Vote; ECB Steady at 2%

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The Spin

Keeping interest rates steady makes sense as inflation stabilizes near the 2% target and the economy shows resilience despite global uncertainty. The labor market remains solid with low unemployment, and past rate cuts are already supporting growth through consumption and investment. A data-dependent approach allows policymakers to carefully balance risks without pre-committing to any particular path, ensuring inflation stays anchored while economic momentum builds gradually.

Holding rates reflects troubling economic weakness rather than inflation success. Growth forecasts have been downgraded significantly below official budget assumptions, unemployment keeps rising, and business confidence remains fragile. Government policies on taxes, energy and labor markets have kept UK inflation stubbornly high compared to other nations, preventing faster rate cuts that struggling businesses desperately need to avoid further job losses and stagnation.


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© 2026 Improve the News Foundation. All rights reserved.Version 6.18.0

© 2026 Improve the News Foundation.

All rights reserved.

Version 6.18.0