Governor Andrew Bailey explains decision to hold interest rates at 5.25% from hair cut tutorial for female Watch Video

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✓ Published: 21-Mar-2024
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The Bank of England has kept its base rate at 5.25%, as was widely expected. No change in the 5.25% base rate is expected, but traders expect action later in the year after the Federal Reserve last night signalled three cuts in 2024.

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The stock market soared to record levels as Federal Reserve Chair Jerome Powell and officials signaled potential rate cuts later in the year. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite closed at record highs. Futures markets reflected an increased expectation that the Fed would slash rates by June, with the likelihood rising from about 50% to 75%. The Fed's latest projections indicate that inflation will decline more slowly than anticipated. Market confidence was bolstered by the Fed's projections, which slightly increased their inflation and growth forecasts for the year while maintaining rate cut projections.
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