The Bank of England has decided to maintain the base interest rate at 5.25% per annum, as indicated in the press release. This decision coincided with analysts' expectations. The central bank also clarified its inflation forecast for the current year, reducing it to 2.75% from the previous 3.25%. At the same time, forecasts for 2025 and 2026 were raised to 2.5% and 2%, respectively. It is important to note that the Bank of England has also revised its inflation estimate for 2023, claiming that consumer price growth was 4.25%, not 4.75% as previously reported. The GDP forecast for the current year has been raised to 0.25% growth compared to previous expectations of zero dynamics. The forecast for 2025 was improved to 0.75% from 0.25% earlier, and in 2026 the Central Bank expects the British economy to grow by 1% instead of the 0.75% expected in November. Economic growth in 2023 was 0.25%, which is lower than the previous forecast of 0.5%.
