Markets are greatly underestimating the likelihood that the Bank of England will need to speed up the pace of interest rate cuts, Goldman Sachs has argued. They forecast that UK interest rates could drop to 3.

As the Bank of England scrambles to unwind the disastrous effects of quantitative easing, the hidden costs of this policy are becoming clear, says Damian Pudner Quantitative easing (QE) has long been the Bank of England’s monetary policy nuclear option.

The Bank of England's Monetary Policy Committee (MPC) uses interest rates to put a brake on the nation's spending.

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

Most analysts had been expecting the inflation rate to stay at 2.6% in December. The latest figures increase the chance the Bank of England (BoE) will slash interest rates at its next meeting on ...

Wage growth increased by 3.4% after taking into account inflation, driven by strong increases in the private sector.

The fall in the headline rate of inflation from 2.6 percent to 2.5 percent was unexpected and positive news for the Chancellor Rachel Reeves.

The Bank of England will cut interest rates four times this year to support a flat-lining economy, economists polled by Reuters said, but they added that risks to inflation are to the upside, suggesting policymakers may end up doing less.

Alan Taylor, the most recently appointed member of the Bank's monetary policy committee (MPC) said the UK is 'in the last half mile on inflation' and called for a pre-emptive cut

Core inflation, which strips out the direct impact of volatile energy and food prices is now at a four-year low, having dropped to 3.2% in December from 3.5%. Services inflation is at a two-year low of 4.4% after a chunky fall from 5%. This is the real positive news.

Inflation unexpectedly came in below expectations in December but remains above the Bank of England's 2 per cent figure. At its peak, inflation stood at 11.1 per cent. The latest ONS figures ...

Inflation fell to 2.5pc in December, down slightly from 2.6pc in November, even further above the Bank of England’s 2pc target. Experts had expected inflation to remain at 2.6pc. The Consumer ...