BOE likely to hold on rates, but weakening economy may force its hand in 2024

MOST economists predict that the Bank of England (BOE) will maintain its benchmark interest rate at 5.25 per cent on Thursday (Nov 2). As the UK struggles with stagflation, however, there are concerns that the central bank will have to cut rates in the first or second half of 2024.

The good news – favouring the unchanged 5.25 per cent forecast of 61 out of 73 economists in a Reuters poll last month – is that food and retail inflation numbers are falling.

The British Retail Consortium (BRC), which represents 200 major British retailers, said that annual shop price inflation fell to 5.2 per cent in October, from 6.2 per cent in September.