Summary
The Bank of England is expected to keep its interest rate at 4% during the final meeting before the UK government announces its Budget. While some experts think a rate cut might happen in December, most predict no change now. Interest rates affect borrowing costs and savings returns.
Key Facts
- The Bank of England is expected to maintain its interest rate at 4%.
- This decision follows the Bank's final meeting before the Chancellor's Budget announcement.
- Inflation in September was 3.8%, which is above the Bank's 2% target but lower than expected.
- Some experts predict a possible interest rate cut in December if the Budget includes tax rises that don't increase inflation.
- The Monetary Policy Committee (MPC) is expected to announce its decision at 12:00 GMT.
- The interest rate impacts the cost of borrowing for individuals and businesses, as well as returns on savings.
- Many lenders have been cutting interest rates on new fixed deals, anticipating future cuts from the central bank.
- Observers expect a divided vote among the nine MPC members, each of whom will have their views published.
