BoE close to cutting rates from 16-year high


Hot seat: A file photo of construction work outside the Bank of England in London. Britain’s inflation is now lower than in the eurozone and the United States. — Reuters

LONDON: The Bank of England (BoE) looks to be in a position to cut interest rates after holding them at a 16-year high of 5.25% for the past year, though markets and economists are far from certain the British central bank will take the plunge.

Economists polled by Reuters last week overwhelmingly expected a quarter-point cut but think the vote will be close on the BoE’s Monetary Policy Committee (MPC), with only a five to four majority in favour.

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