The Bank of England will announce its latest interest rate decision at midday, and it is a finely balanced one.
Until yesterday morning, the consensus among economists and investors was that the Bank would go for another 25 basis point rise, to 5.25 per cent.
But the inflation figures announced on Wednesday have thrown a spanner into the works. The headline rate for August came in lower than expected, at 6.7 per cent. Immediately, investors pared their bets on another rate increase and economists scaled back their expectations.
It’s not just about the Bank of England today though. There are also interest rate decisions due from Switzerland, Sweden, Norway, Turkey and South Africa.
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