Bank of England keeps rates steady, sees further loosening as jobs market weakens
The
Bank of England
held interest rates at 4.25% as expected on Thursday but said it was focused on risks from a weaker labour market and higher energy prices as conflict in the Middle East escalates.
Noting the elevated global uncertainty and persistent inflation, the
Monetary Policy Committee
voted 6-3 to keep rates on hold, with Deputy Governor Dave Ramsden joining Swati Dhingra and Alan Taylor to vote for a quarter-point reduction.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Play War Thunder now for free
War Thunder
Play Now
Undo
A Reuters poll of economists had forecast an 7-2 vote to keep rates on hold after the central bank cut borrowing costs last month for the fourth time since August 2024.
"Interest rates remain on a gradual downward path," BoE Governor Andrew Bailey said, although policymakers added that interest rates were not on a pre-set path.
"The world is highly unpredictable. In the UK we are seeing signs of softening in the labour market. We will be looking carefully at the extent to which those signs feed through to consumer price inflation," he added.
Live Events
The central bank said rising tensions in the Middle East as it held its meeting over the past week had not been key to June's decision to hold rates but would be closely monitored going forward.
"Energy prices had risen owing to an escalation of the conflict in the Middle East. The committee would remain vigilant about these developments and their potential impact on the UK economy," the BoE said.
Nearly all 60 economists polled by Reuters before the BoE's June meeting had predicted it would keep Bank Rate on hold at 4.25% with the next cut likely in August with a further reduction in the final three months of this year.
Before Thursday's rate decision, investors were pricing in around two more quarter-point rate cuts by the BoE to 3.75% by December 2025.
The central bank kept its guidance saying it would take a "gradual and careful" approach to further rate cuts.
But Bank staff analysis struck a less pessimistic tone about the potential impacts of U.S. President Donald Trump's tariffs on the global economy, saying it might be less severe than thought in May. Trade uncertainty would still continue to have an impact on the UK economy, the central bank added.
The BoE left its forecast for inflation broadly unchanged for the second half of this year, seeing a peak rate of 3.7% in September and an average of just under 3.5% for the rest of the year.
The economy is now expected to grow around 0.25% in the second quarter of this year, slightly stronger than in its May forecast, though it said the underlying pace was weak.
Since the middle of last year the BoE has cut interest rates by 1 percentage point, the same as the U.S. Federal Reserve - which on Wednesday held interest rates at the 4.25%-4.50% range - but only half as much as the European Central Bank, which has had less persistent inflation.
Markets see just under half a percentage point more easing by the Fed this year and a further quarter-point cut by the ECB.
The Fed on Wednesday cut its economic growth forecasts for 2025, raised its inflation projection and said the uncertainty hanging over the economy had diminished but remained elevated.
Earlier on Thursday, the Swiss National Bank cut rates by 25 basis points to zero as inflation inflationary pressures decreased and it focused the risk of trade wars for inflation and the global economy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
42 minutes ago
- Time of India
Shipping company Maersk temporarily pauses vessel calls at Israel's Haifa port
Container shipping company Maersk said on Friday it had temporarily paused vessel calls at Israel's Haifa port amid Israel-Iran tensions. The Danish company said it did not experience any further disruptions to its scheduled operations in the region. Israel has been hitting Iran from the air since last Friday in what it describes as an effort to prevent Tehran from developing nuclear weapons . Iran has denied plans to develop such weapons and has retaliated by launching counterstrikes on Israel. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo On Thursday, Iran's Revolutionary Guards said it had launched combined missile and drone attacks at military and industrial sites linked to Israel's defence industry in Haifa and Tel Aviv .
Time of India
43 minutes ago
- Time of India
Soon, you may enjoy Turkey-like hot air balloon rides at these two locations in Delhi
Delhi residents may soon experience the thrill of hot-air ballooning, similar to popular rides in Turkey's Cappadocia region, without leaving the city. The Delhi Development Authority (DDA) has announced plans to introduce recreational hot-air balloon rides at two major locations — the Commonwealth Games Village near Akshardham and the Yamuna Sports Complex in Surajmal Vihar — as part of a new tourism push. Delhi Hot Air Balloons: Two sites selected for initial launch Following internal evaluations, DDA has identified the two sports complexes for the pilot phase. A tender has been issued, inviting private firms to run the hot-air balloon services. 'These sites will be offered for operation of hot air ballooning on a revenue-sharing basis. The required area, approximately 60 metres by 60 metres at each site, will be provided to the firm as per mutually agreed timings and days,' the tender issued by DDA stated. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 'Swing is King': Top Trader Hemant's Strategy Finally Explained in this Free Session ! TradeWise Learn More Undo Licence terms, advertising rights, and operating hours fixed According to the plan, firms will be allowed to advertise on the balloons. Each operator will receive a licence for three years, with a possible extension of up to nine years. 'The space will be provided to the firm for undertaking a maximum of four hours of flying per day. However, temporary permission for additional hours may be granted by DDA on a case-to-case basis,' the proposal added. Live Events Ticket prices to be operator-driven, but must stay reasonable While the pricing for the balloon rides will be set by the operator, DDA has directed that ticket costs be kept at an affordable level for the general public. Leisure tourism to be added to legacy sports infrastructure The Commonwealth Games Village, located along the Yamuna River and built to house athletes for the 2010 Commonwealth Games, spans nearly 100 acres. The Yamuna Sports Complex in Surajmal Vihar was also developed as part of the same event. Both sites are currently used for sports activities and have additional open spaces. To begin with, four specific locations have been marked at each complex to host the balloon rides, aiming to increase footfall and make better use of the existing infrastructure. If successful, Delhi could soon offer its own version of the scenic hot-air balloon experiences popular in global tourist hubs. Ropeway along Yamuna in the works, says DDA Delhi could soon also get its first urban ropeway system, with the Delhi Development Authority (DDA) planning to build the transport line along the Yamuna river. The proposed aerial route is expected to give passengers elevated views of religious sites, riverbanks, and parts of Old Delhi, officials said. Ropeway to be integrated with Kalindi Aviral project The ropeway is expected to begin from the Kalindi Aviral site, a riverfront project currently under development along the Yamuna's western bank. Spread over 163 hectares, the Kalindi Aviral corridor covers the stretch from NH-24 to the Barapullah drain. The Baansera park near Sarai Kale Khan, which has already been opened to the public, is part of this larger initiative. Capacity and technical details under discussion The proposed ropeway aims to carry up to 3,000 passengers per hour in each direction. According to the initial plan, each gondola will have a capacity of eight to ten people. However, key design elements including the final route alignment, number of stations, and placement of towers are still being finalised. The ropeway plan is part of a broader effort to improve mobility and promote tourism along the Yamuna, while also adding green and recreational infrastructure. (Inputs from PTI)
Time of India
43 minutes ago
- Time of India
Honda launches New City Sport: Check price, specification, and other details of this limited edition
Honda Cars India Ltd. (HCIL) has unveiled the New City Sport, an exclusive new variant of its popular mid-size sedan, bringing a fresh wave of style and dynamism aimed at young, spirited car buyers. Sporting the tagline "Life is a Sport", the City Sport is designed to reflect boldness, individuality, and a passion for the extraordinary — both on the road and off it. This new grade of the City will be offered in limited units, exclusively in CVT (automatic transmission), and comes in three vibrant colour options: Radiant Red Metallic, Platinum White Pearl, and Meteoroid Gray Metallic. 'The new City Sport has been crafted to meet the aspirations of young buyers who value individuality and a spirited driving experience. It embodies a perfect blend of sporty exterior and interior style, fun-to-drive performance, and the everyday usability that Honda City is known for — at a price that makes it even more compelling,' said Kunal Behl, Vice President, Marketing & Sales, Honda Cars India Ltd. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Articles Vally Undo Key Highlights of the New Honda City Sport Bold Exterior Styling: The City Sport grabs attention with a Sporty Black Grille, Black Trunk Lip Spoiler, Glossy Black Shark Fin Antenna, Black ORVMs, and an Exclusive Sport Emblem. Its dynamic profile is enhanced by Multi-Spoke Sporty Grey Alloy Wheels, setting a distinctive tone. Live Events Sport-Inspired Interiors: Inside, the cabin features a premium all-black theme with contrasting red stitching on leather seats, door inserts, and steering wheel. The ambiance is elevated with glossy black AC vents, a Sporty Dark Red Dash Garnish, black roof lining, and a customizable 7-colour rhythmic ambient lighting system, enhancing the immersive sporty feel. Energetic Drive & Safety: Powered by a 1.5L i-VTEC petrol engine (E20 compliant) producing 121 PS and 145 Nm of torque, mated to a CVT with paddle shifters, the City Sport delivers 18.4 km/l mileage. The model is also equipped with Honda SENSING (ADAS), offering intelligent driver-assist technologies for enhanced safety. New Honda City Sport Price The Honda City Sport CVT is priced at Rs 14,88,900 (Ex-Showroom, Delhi). In April 2024, Honda Cars India registered 4,351 units in domestic sales and 6,516 units in exports, reflecting steady demand for its portfolio. With the launch of the City Sport, Honda aims to inject a dose of youthfulness into the premium sedan segment, targeting customers who seek not just comfort and reliability, but also style and performance that stand out.
