Bank of England leaves interest rates at 5.25% but signals future cuts

Bank’s survey finds expectation of 4.5% base rate by end of 2024 amid ‘encouraging signs’ on inflation

Bank of England policymakers signalled at least three interest rates cuts this year after seeing “encouraging signs” of falling inflation, as they kept interest rates on hold at 5.25% for a fifth time.

Financial markets expect three 0.25 percentage point cuts in interest rates this year – with the first one expected in June – and the Bank said its own survey of financial companies found that they expected the same drop to 4.5% before the end of 2024.