Bloomberg: price pressure in UK reflects Bank of England officials' sentiment

The Bank of England is expected to make a hawkish decision this week, just weeks after cutting interest rates. Two previously dovish policymakers are now reluctant to support further monetary easing. Notably, even Catherine Mann, who last month voted for a half-point cut in borrowing costs, is now emphasizing the need for a more restrictive policy, according to Bloomberg.

As Bloomberg's economists anticipate, seven members of the Bank of England's Monetary Policy Committee will vote to keep rates unchanged, while two will vote for a quarter-point rate cut.

Meanwhile, the UK's financial regulator is closely monitoring the potential impact of a $33.6 billion payroll tax hike on employers, which is set to take effect next month.

A survey by Boston Consulting Group found that only 15% of British companies plan to cut jobs in response to the tax increase. The majority will instead reduce non-essential spending or limit new hiring. Bloomberg interprets these figures as a positive sign for the UK’s economic growth prospects in 2025.