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James Smith reports that the Bank of England has decided to keep interest rates steady at 3.75 percent, a move that was widely expected.
He highlights that the main focus now shifts to whether the Bank will provide any guidance regarding the direction of its next rate change, amid concerns about inflation, falling energy prices, and a weak labor market.
UK inflation failed to rise in May, with falling energy costs expected to keep the inflation peak lower later this year, according to Smith’s earlier report on recent data. He previously noted a notable decline in UK price growth, suggesting it could be the last decrease for some time in a separate update. These developments have shaped market expectations around the Bank’s rate decisions.