Brief by Shorts91 Newsdesk / 09:53am on 21 Dec 2023,Thursday Business
The UK's inflation rate unexpectedly fell to 3.9% in November, the lowest in over two years, raising hopes the Bank of England will start cutting interest rates sooner than expected. The fall was largely driven by declining petrol prices. However, while inflation is declining from its peak in 2022, prices overall remain high and many households continue to struggle with high borrowing costs and energy bills. Some economists now predict the Bank may begin lowering rates in the first half of 2024 to stimulate the economy, much earlier than previously thought. But inflation remains almost double the Bank's 2% target so rate cuts are unlikely in the very near future.
