Bank of England to hold its line against rate cut talk

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The Bank of England looks set to stick to its tough line against talk of interest rate cuts in Britain, even as other leading central banks signal that they might be approaching a turning point in their fight against inflation.

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08 Dec 2023

The BoE is forecast to keep borrowing costs at a 15-year high on Dec. 14, according to economists in a Reuters poll.

It is also expected to restate that rates must stay elevated to ensure Britain's still stubborn inflation is beaten.

The European Central Bank and the U.S. Federal Reserve are likely to keep their benchmark borrowing rates on hold next week too. But top officials at both central banks have shown they are now turning their minds to rate cuts.

ECB board member Isabel Schnabel told Reuters this week that the euro zone's central bank could now take further rate hikes off the table and raised the possibility of a cut in mid-2024.

Last week Christopher Waller, a hawkish and influential voice at the Fed, sounded a similar note of confidence that a first rate cut was on the way.

The BoE is «increasingly looking like