The post UK’s Rachel Reeves tells BoE November budget will target high inflation after holding interest rates appeared on BitcoinEthereumNews.com.

Rachel Reeves told the Bank of England that her November budget will focus on fighting inflation, after the Bank decided to keep interest rates at 4%. The Chancellor said inflation is still too high and confirmed that Cabinet ministers had been asked to work with their departments to figure out new actions that could help bring costs down. “The prime minister and I recognize that we must do everything in our powers to keep costs down and lower them,” Rachel wrote in a formal letter to Governor Andrew Bailey, which was required because inflation is more than one percentage point above the Bank’s 2% target. The UK’s inflation rate is currently at 3.8% and expected to hit 4% by next month. That prediction came from the Bank’s own forecasts. The interest rate decision was made by the Monetary Policy Committee, where seven of the nine members voted to hold the rate at 4%. Two members voted for a cut to 3.75%, showing some internal disagreement but not enough to move the needle. The UK now holds the second-highest interest rate in the G7, right behind the United States. Rachel faces backlash over tax hike and wage policy Rachel has faced heavy criticism over last year’s budget, where she raised payroll taxes by £26 billion and increased the minimum wage. Businesses say they were forced to raise prices to stay afloat and warned her not to push more costs onto them in November. The Bank of England said the rise in inflation was being driven by food prices and other regulated costs like water bills and the Vehicle Excise Duty. In his letter, Bailey told Rachel that the effect of the tax hike was still being felt, writing: “A reduction in total labor cost growth also appears to have been delayed…

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Filed under: News - @ September 18, 2025 1:29 pm