Policymakers say they want to see more evidence that price pressures are easing before cutting rates
The Bank of England has signalled it could start cutting interest rates as early as June after inflation was found to be “moving in the right direction”, as it kept borrowing costs on hold at 5.25% for the sixth time in a row.
Alongside the decision to keep rates on hold, the Bank said inflation was already on course to hit its target of 2% and would fall to just 1.6% in two years, opening the door to future cuts in interests.
Giving a more upbeat assessment of the economic outlook than in its February report, the Bank also forecast the UK recession has ended, predicting the economy grew 0.4% in the first three months of the year. The Office for National Statistics is to publish the official estimate of growth on Friday.
