The Bank pauses
Last week finally brought some rather better news for the UK economy, as the latest inflation figure came in below both the previous month’s level and the market’s expectations. The Chancellor responded with a statement that “the plan is working”, and the Bank of England paused its interest rate increases and left its key lending rate unchanged – the first time it has done so in nearly 2 years.
Those are the headlines, and without doubt it is a step in the right direction. But there are rather a large number of caveats before we can declare victory over inflation.