Bank of England expected to keep rates unchanged amid economic challenges – CNBC

CNBC experts believe that the Bank of England will maintain the interest rate at the current level of 4.5% on March 20. Considering the impact of geopolitical risks on inflation in the country, the regulator is likely to choose a cautious approach, the news source reported. Bank of England Governor Andrew Bailey has previously warned of significant risks to the economy arising from potential US tariffs.

The UK is already facing signs of slowing economic growth. This has been confirmed by weaker manufacturing indicators. As business owners await the controversial tax changes to come into force, they are concerned about associated consequences such as lower investment and job losses. Given this, officials of the Monetary Policy Committee haven't come to an agreement on the pace of rate cuts.

ING economist James Smith anticipates maintaining the current interest rate through May. Observing the discussions within the committee, he notes the prevalence of cautious sentiment among most officials. At the same time, inflationary pressure creates certain difficulties for the central bank, which has to balance between economic risks and the need to maintain stability of the national currency.