Why did The Bank of England follow the Federal Reserve and keep interest rates on hold at 3.75% PA
The Bank of England decided to keep Bank Rate at 3.75% because the Monetary Policy Committee (MPC) judged that cutting rates too soon could allow inflation to become persistent, while raising rates could unnecessarily weaken an already fragile economy. In other words, they chose to wait for more evidence. The main reasons were:Inflation is still […]