BoE to keep rates at 16-year high before polls

Higher prices: Shoppers select fresh produce at a market in the Kingston district of London. BoE forecasts inflation will rise to around 2.6% by the end of the year, as the effect of recent cuts to regulated household energy bills faded. — Bloomberg

LONDON: Britain’s central bank looks on course to hold interest rates at a 16-year high of 5.25% as underlying inflation pressures prove persistent, depriving Prime Minister Rishi Sunak of a much-needed boost ahead of a July 4 election.

Bank of England (BoE) governor Andrew Bailey opened the door early last month to a rate cut, saying he was “optimistic that things are moving in the right direction” and that a June rate cut was an option – although no fait accompli.