The News
The Bank of England left interest rates unchanged at 4.75% in its final meeting of the year, after recent data showed that UK inflation has risen at its fastest pace since March.
A split among members of the Bank’s Monetary Policy Committee bucked analysts’ expectations, however, opening the door to a rate cut in February, the BBC reported.
It comes as the Bank of Japan unexpectedly held its benchmark interest rate steady, a move which, alongside US policymakers forecasting more hawkish monetary policy, hammered the yen.
Economists had expected the Bank of Japan to raise rates by 0.25 percentage points in the face of above-target inflation as well as improving business sentiment. The decision came after the US Federal Reserve indicated it would be cautious next year, with members of the rate-setting committee projecting a half-point of rate cuts in 2025, rather than the full percentage point they had predicted in September.
