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Bank of England Holds Rate Amid Rising Inflation Concerns

2/1/2026

24 4 Full Breakdown

Summary

Story summary

The Bank of England is expected to hold Bank Rate at 3.75% at its upcoming meeting, following a recent rate cut.
Inflation rose to 3.4% in December, driven by tobacco duties and airfares.
Philip Shaw of Investec says inflation remains above the 2% target, limiting cuts.
Edward Allenby of Oxford Economics expects the next cut in April as the MPC balances growth and wage-driven inflation.

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Story summary

The Bank of England is expected to hold Bank Rate at 3.75% at its upcoming meeting, following a recent rate cut.
Inflation rose to 3.4% in December, driven by tobacco duties and airfares.
Philip Shaw of Investec says inflation remains above the 2% target, limiting cuts.
Edward Allenby of Oxford Economics expects the next cut in April as the MPC balances growth and wage-driven inflation.