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Why is the Bank being cautious in delaying rate cuts?

While the UK is far from overheating, the MPC still sees inflationary dynamics within the economy

Bank of England keeps interest rates unchanged at 5%
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After the Federal Reserve’s monster 0.5 percentage point cut in US borrowing costs on Wednesday, it seemed strange that the Bank of England should sit on its hands and keep interest rates on hold.

From a position earlier this year when the UK’s central bank was leading the way in cutting interest rates, it is now a laggard.

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