Closing post
Time to wrap up….
Bank of England policymakers have signalled at least three interest rates cuts this year after seeing “encouraging signs” of falling inflation as they kept interest rates on hold at 5.25% for a fifth time.
The financial markets expect three cuts of 0.25 percentage points this year, forecasting the first to take place in June. The Bank said its survey of financial companies found that they expected rates to fall to 4.5% before the end of 2024.
Inflation has decreased sharply in recent months, with the consumer prices index falling to 3.4% in February. That was still above the Bank’s 2% target, but well below a peak reading of 11.1% in October 2022.
Eight members of the Bank’s rate-setting monetary policy committee (MPC) voted to hold interest rates, while the ninth, Swati Dhingra, backed a cut of 0.25 percentage points. It was the first time since September 2021 that no one on the MPC voted for a rate rise.
The pound fell against the dollar and euro as investors calculated they would get a lower interest rate this year on their UK deposits than was previously forecast. Sterling was down 0.6% against the dollar at $1.27, and down 0.2% against the euro at €1.16 after the announcement.
Shares are rallying in London, though, with the FTSE 100 up around 2% and on track for its best day in over a year.
More here:
Based on the data so far and signals from Thursday’s decision, financial markets expect a first cut in June….
But the BoE has faced criticism from several quarters for not cutting rates today, to help the economy and take some strain off households.
The BoE’s decision came on a busy day for central bank news, in which Switzerland surprised markets with a rate cut, while Turkey hiked its policy rate from 45% to 50%.
In other news:
The US government has filed an antitrust case against Apple, accusing the tech giant of engineering an illegal monopoly in the smartphone market.
Updated
Over in parliament, shadow transport secretary Louise Haigh has challenged ministers over the revelation that P&O Ferries has paid some crew members less than half the UK minimum wage.
Last Sunday marked the second anniversary of P&O Ferries sacking 786 workers. Two years on nothing has changed.
— Louise Haigh (@LouHaigh) March 21, 2024
It has now been revealed that the company is forcing staff to work 12 hours a day, 7 days a week, for up to *17 weeks* at a time.
This cannot be allowed to continue. pic.twitter.com/SkcENib7bG
The story, from the Guardian and ITV News, broke this week, on the second anniversary of P&O Ferries controversially sacking about 800 workers in 2022.
The low-cost crew, who replaced many of the workers P&O axed two years ago, are being hired from countries including India, the Philippines and Malaysia, and are earning as little as £4.87 an hour.
