Bank of England expected to leave interest rates on hold after rise in inflation – business live

2026-02-05 - 07:15

Rolling coverage of the latest economic and financial news Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Interest rates on both sides of the channel are likely to be left on hold today, but relief may be coming for UK borrowers within months. “The Bank of England is widely expected to keep interest rates unchanged in February. On the back of the Budget, we could see a more benign outlook on the inflation front, at least in the short-term. When it comes to forward guidance, the BoE is likely to remain noncommittal about the timing of any future interest rate cuts. That said, the combination of lower inflation ahead and continued softening of the UK labour market should reinforce the central bank’s view that the path for monetary policy is towards a lower Bank rate, potentially as early as next month.” For investors, this environment of stable inflation and steady interest rates provides a degree of clarity and reduces the risk of further policy tightening. We expect the ECB to remain on hold, as markets have already priced in, with a high bar for any policy action in the near term. 8.30am GMT: eurozone construction PMI report for January 9am GMT: UK car sales for January 9.30am GMT: UK construction PMI report for January Noon: Bank of England interest rates decision 12.30pm GMT: BoE press conference 1.15pm GMT: European Central Bank interest rate decision. 1.45pm GMT: ECB press conference Continue reading...