Bank of England expected to slow bond-selling programme and hold interest rates today – business live

Rolling coverage of the latest economic and financial news

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Although the Bank of England may not raise rates today, money market pricing suggests borrowing costs are going to increase over the next year or so.

As of last night, investors were pricing in four quarter-point increases by the end of 2027, which would lift Bank rate from 3.75% to 4.75%.

The labour market is weak, payrolled employment is falling, wage growth is negative in real terms and job vacancies are also at a multi-year low.

July growth was stronger than expected, however, this was driven by AI Capex spend, and construction and manufacturing contracted last month.

“The plain fact is that [US] inflation is too high, and has been for too long.

“This summer’s inflation readings do not tell me that underlying trends have meaningfully improved.”