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The Bank of England has voted to keep interest rates unchanged, but showed what was perhaps the clearest sign in years that cuts could come in the months ahead. Bank governor Andrew Bailey said the economy is “not yet at the point” where rates can be lowered, but things are “moving in the right direction”. For the first time since September 2021, no-one on the nine-person decision-making body that sets interest rates voted for an increase. <br/> Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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The Bank of England has opted to maintain its current interest rates at 5.25 percent, despite a decline in inflation. In February, inflation dipped to 3.4 percent from January's 4 percent, marking the lowest rate since September 2021 when it stood at 3.1 percent.<br/><br/>They anticipate inflation will return to its two percent target between by June this year, nearly 18 months earlier than previously projected. <br/><br/>Those in the property sector will particularly welcome the news as there have been fears of a market crash.
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The UK’s cost of living crisis “is ending” and people have “cheered up”, a Tory MP has said.Andrea Leadsom, Conservative MP for South Northamptonshire made her comments after inflation fell by 3.4 percent.In an interview on the Sky Politics Hub on Wednesday (20 March), Ms Leadsom said: “What is really important is we have seen a fantastic drop in inflation today, that’s obviously cheered everyone up. It is what we have been working towards, is seeing the cost of living crisis end, and people take more home in their pay packets or in their salaries every day.”
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The US has emerged as an economic leader in the post-pandemic global economy, outperforming Asian economies through significant post-pandemic immigration that addresses inflation and workforce challenges. Japan and Taiwan are experiencing slower growth, as aging populations threaten economic stability and increase reliance on volatile sectors like semiconductors. Immigration tends to increase overall output and even raise the average income of native workers due to introducing diverse skills into the labor force. The U.S. has reduced inflation without significant unemployment increases, partly thanks to the influx of foreign workers.
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