The Bank of England‘s governor Andrew Bailey has described economic growth in the UK as “subdued”, as a major charity has warned that keeping interest rates unchanged at 5.25 per cent will bring ‘little relief’ to Britons.
At a press conference Mr Bailey said that economic growth will remain “broadly flat” through 2024 and then recover as we approach 2026.
He added: “Inflation is falling, and we expect it to keep falling this year and next. Our increases in interest rates are working to bring inflation back to the 2% target. So today we have voted to maintain Bank Rate at 5.25%.”
Amid calls in some quarters for the BoE to cut interest rates he said they will not be reduced for “quite some time yet” and that they need to “squeeze inflation out of the system.”
He added: “There’s been no discussion on the committee about cutting interest rates.”
The Joseph Rowntree Foundation (JDF) said the interest rate hold will bring “little relief to millions of families already struggling” with high prices, the rising costs of debt and a sharp increase in unemployment.
