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Bank of England Cuts Interest Rates, but Signals Stickier Inflation

The central bank said that future cuts would be gradual amid higher inflation forecasts after the new government introduced spending and tax increases in its budget.

© Neil Hall/EPA, via Shutterstock

Policymakers have been cautious in cutting interest rates, despite inflation dropping below the central bank’s 2 percent target. With rising gas and electricity prices, inflation is expected to climb.
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