Budget could knock half a percentage point off inflation, Bank chief says
PositiveWorld Affairs
- Bank of England deputy governor Clare Lombardelli announced that measures aimed at reducing energy prices and freezing rail fares could potentially lower inflation by half a percentage point. This statement comes as the UK grapples with rising living costs and economic pressures.
- The reduction in inflation is significant as it may influence monetary policy decisions, including potential interest rate cuts by the Bank of England. This could provide relief to consumers and businesses alike, fostering a more stable economic environment.
- The backdrop of this announcement includes a recent decline in UK inflation to 3.6%, the first decrease in five months, which raises expectations for the upcoming budget statement by Chancellor Rachel Reeves. However, concerns persist regarding the impact of budget leaks on economic confidence, highlighting the delicate balance policymakers must navigate.
— via World Pulse Now AI Editorial System
