UK inflation overshoots forecasts in cost of living warning January 21, 2026 Inflation overshot forecasts pencilled in by economists, sending the Bank of England a warning on their steady pace of interest rate cuts. New data published by the Office for National Statistics (ONS) has shown consumer price index (CPI) inflation, the headline measure for price growth, hitting 3.4 per cent in the year to December. Economists [...]
Andrew Bailey: Muted response to Trump does not bring ‘assurance’ January 20, 2026 Bank of England governor Andrew Bailey said the “muted” market response to President Trump’s latest tariff threats did not bring any assurance over global financial stability. Bailey on Tuesday morning suggested that President Trump’s tariffs on the UK and major European economies would not be a “trigger” for a financial breakdown. During a Treasury Committee [...]
Bank of England’s Bailey: Central banks must challenge populism January 16, 2026 Andrew Bailey has called on central banks international institutions to stand up to proponents of populism with their words and actions, warning that organisations like the Bank of England are being painted as “unresponsive and acting for the benefit of powerful” interests. In a speech to a group of economists and officials in London, governor [...]
Central banks throw weight behind Fed after Trump assault January 13, 2026 Some of the world’s most prominent central banks have issued a full-throated support of the Federal Reserve and its chair Jay Powell, after Donald Trump’s campaign against its independence escalated with a Department of Justice legal action. In an unusual joint intervention, 11 central banking chiefs declared they stood in “full solidarity” with the Fed’s [...]
Bailey sounds alarm on AI as youth unemployment jumps December 19, 2025 AI could displace workers on a scale not seen since the Industrial Revolution, Bank of England governor Andrew Bailey has warned, as the UK jobs market shows fresh signs of strain. Bailey said the rapid adoption of AI across the economy was “most likely” to have a similar effect to past technological upheavals. “As you [...]
Bank of England cuts interest rates to near three-year low December 18, 2025 The Bank of England has delivered a pre-Christmas rate cut, reducing its central interest rate to 3.75 per cent amid a deteriorating labour market and signs price rises will continue to slow into the new year. In a close 5-4 vote that was decided by Andrew Bailey, the Monetary Policy Committee (MPC) chose to reduce [...]
‘Chance of 2026 recession’ despite interest rate cut – follow live December 18, 2025 Welcome back to the Morning Wire liveblog. The Bank of England has handed Chancellor Rachel Reeves and the Labour government a highly-desired Christmas present today. The central bank confirmed a chop to interest rates falling to 3.75 per cent – the lowest in nearly three years. It comes after inflation undershot expectations on Wednesday providing [...]
Inflation to remain sticky before interest rates call December 15, 2025 Inflation is expected to remain stubbornly high in fresh data to be released on Wednesday, adding greater scrutiny to the Bank of England’s upcoming interest rates decision. Price growth is set to remain at 3.5 per cent in the year to November, a slight fall from the month before, according to consensus established by Trading [...]
Bank of England poised to slash interest rates December 13, 2025 The Bank of England is expected to cut interest rates by 25 basis points to their lowest level in nearly two years at a crunch decision next Thursday. Markets and leading economists have priced in a cut to Bank Rate to 3.75 per cent amid fears activity in the UK economy is stalling and the [...]
‘Time to worry about recession’ – Bank faces pressure to cut rates as economy shrinks December 12, 2025 The Bank of England is coming under mounting pressure to give a shot in the arm to the ailing UK economy after fresh data revealed it suffered another contraction in October. The central bank’s Monetary Policy Committee (MPC) will meet next Thursday where economists are pencilling a 25 basis point reduction to interest rates taking [...]