The Bank of England must contend with a slowdown in Britain's economy but also stubborn inflation pressures when it considers whether to cut interest rates in early February as well as its message about the outlook for the rest of the year.

Employers are cutting jobs and raising prices to offset tax increases, with wages still growing too fast for policymakers’ comfort

Read Less Inflation edged down to an annual rate of 2.5% in December, from 2.6% the month before, providing a glimmer of hope that the Bank of England might cut interest rates at some point in the ...

Inflation is set to rise to 3 percent in the spring, meaning the Bank of England is unlikely to cut interest rates in the near future, according to economists

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

However, it means the Consumer Prices Index (CPI) - the main measure of inflation - remains stubbornly above the Bank of England’s target of 2%. The Office for National Statistics (ONS ...

The Bank of England will cut interest rates four times this year to support a flat-lining economy, economists polled by Reuters said, but they added that risks to inflation are to the upside, suggesting policymakers may end up doing less.

The fall in the headline rate of inflation from 2.6 percent to 2.5 percent was unexpected and positive news for the Chancellor Rachel Reeves.

Wage growth increased by 3.4% after taking into account inflation, driven by strong increases in the private sector.

Alan Taylor, the most recently appointed member of the Bank's monetary policy committee (MPC) said the UK is 'in the last half mile on inflation' and called for a pre-emptive cut

Inflation is stuck above the BoE's 2% target and looks set to rise further while the economy has stagnated since the middle of 2024, offering conflicting signals for the central bank's rate-setters.

The surge in wages, coupled with companies reducing their workforce, “muddies the picture” for the Bank of England in terms of deciding whether to cut interest rates, according to the Resolution Foundation.