Bank of England Maintains High Interest Rates, Downgrades UK Economic Growth Forecasts
The Bank of England has downgraded its forecasts for UK economic growth, with expectations of flatlining GDP in the July-to-September quarter and only 0.1% growth in the current quarter. Inflation is projected to return to target at the end of 2025, six months later than previously forecast. The central bank kept interest rates unchanged at 5.25%, the highest level since February 2008, as data shows a weakening economy and easing inflation. The UK is expected to enter a recession later this year, according to Capital Economics.