The Bank of England expects Chancellor of the Exchequer Rachel Reeves' budget to reduce the UK's inflation rate by up to 0.5 percentage points next spring, even if the government increases spending in the next few years. This analysis may influence the thoughts of interest rate makers at next week's key meeting. At that time, members with differences of opinion will decide whether to resume interest rate cuts. Budget measures, which include freezing railway fares, cutting household energy bills, and reducing fuel taxes, are seen as paving the way for another rate cut at the December 18 meeting.

The Bank of England expects Chancellor of the Exchequer Rachel Reeves' budget to reduce the UK's inflation rate by up to 0.5 percentage points next spring, even if the government increases spending in the next few years. This analysis may influence the thoughts of interest rate makers at next week's key meeting. At that time, members with differences of opinion will decide whether to resume interest rate cuts. Budget measures, which include freezing railway fares, cutting household energy bills, and reducing fuel taxes, are seen as paving the way for another rate cut at the December 18 meeting.