UK base rate cuts to be delayed following last week’s Autumn Statement

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UK base rate cuts to be delayed following last week’s Autumn Statement

Key Takeaways

  • Falling inflation and a lower fiscal deficit allowed the government to announce tax cuts in last week’s Autumn Statement.
  • With further tax cuts likely in March 2024, the Bank of England could adopt a more cautious stance to easing monetary policy.
  • UK economic data has shown signs of picking up. Energy prices have eased, and real incomes are rising. Rising immigration should help counter wage inflation, however.
  • Rate cuts in 2024 still seem likely but the UK now looks set to lag the US and Europe in reducing borrowing costs.
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27 November 2023
Steven Bell
Steven Bell
Chief Economist, EMEA
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UK base rate cuts to be delayed following last week’s Autumn Statement

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