Bank of England to cut rates in March, timing of further cuts unclear: Reuters poll

Bank of England officials announced plans to cut interest rates in March 2024, responding to cooling inflation and improving economic conditions in the United Kingdom, according to a Reuters poll of economists. The poll revealed a consensus among economists that the central bank will reduce its benchmark interest rate by 0.25 percentage points to 5.25% during its March meeting, marking the first cut since the bank began raising rates in December 2021 to combat soaring inflation. While March's rate cut appears increasingly likely, economists expressed uncertainty about the timing and pace of subsequent reductions, with opinions divided on whether the bank will pause after March or continue cutting rates throughout 2024. The Bank of England's Monetary Policy Committee faces the delicate task of balancing inflation concerns with economic growth, as inflation has fallen from a peak of 11.1% in October 2022 to 4.0% in January 2024, though still above the bank's 2% target.