Final meeting of the year, they decided to lower the interest rate from 4% to 3.75%, but by a close vote of 5-4
This meant the interest rate had been lowered 3 times this year, which is one more than they expected, going by the various financial institute at the start of the years. So even the experts don’t know what is going to happen in advance.
From the meeting –
Concerns about weak economic growth and rising unemployment outweighed worries about inflation, which is falling but remains above the Bank’s 2% target
The Bank expects inflation to near 2% by the middle of next year, partially due to the government’s tax and spending policies announced in last month’s Budget
Interest rates are likely to continue on a gradual downward path, Bank governor Andrew Bailey says, but he adds “with every cut we make, how much further we go becomes a closer call”
The Bank’s next meeting to consider interest rates is schedule for 5 February.
As this is the last meeting of the year, I will stop posting about this on my blog, has I been only doing this to see how good the experts are at looking in advance of the year.
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