The Bank of England (BoE) will today hold their latest vote over whether to cut interest rates, following three earlier cuts this year to bring the bank rate down to 4 per cent. Industry analysts are expecting a “hold” vote today, but the split of the vote among MPC members could be indicative of when the next change could occur.
Among the factors affecting the BoE’s decision is UK inflation - which official figures yesterday showed held steady at 3.8% across August, despite food prices rising at a much faster rate.
Elsewhere, Jaguar Land Rover’s woes as a result of the cyberhack in their systems will continue into next month at least, while Microsoft have announced a £22bn investment into the UK in a “tech prosperity deal” and one of the co-founders at Ben & Jerry’s has quit.
Follow The Independent’s live coverage of the interest rates vote plus latest stock markets and business news here:
Key points
- Bank of England vote decision on interest rates expected at 12 noon
- Inflation remains at 3.8%, food inflation higher
Interest rates: All the key details
07:24
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Karl Matchett
Today’s big focus will be the Bank of England deciding on whether to cut interest rates or not. Here’s what you need to know:
When: At 12 noon we get their announcement
What: The nine MPC members vote to cut, hold or raise rates
Last time: In August rates were cut down to the current 4% level
This time: Experts predict no cut today - here’s the detail, reasons and what comes next.
Amazon announces above inflation pay rise for staff
07:16
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Karl Matchett
Online giant Amazon has announced an above inflation pay rise for its employees.
From the end of the month the minimum starting pay will rise by 5.9% to £14.30-an-hour or by 5.5% to £15.30-an-hour depending on location.
Annual salaries for frontline employees will start at a minimum of £29,744 and up to £31,824 depending on location.
The increase will affect tens of thousands of staff across the UK, said Amazon, adding that its minimum starting pay will have risen by 43% since 2022.
07:07
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Karl Matchett
Yesterday’s data confirmed UK inflation remained unchanged last month at 3.8 per cent, but consumers are still facing rising food and drink costs on some of the most popular everyday items like coffee and chocolate.
Food and drink price rises have accelerated for the fifth month in a row, in another hit to the poorest households, with the chancellor admitting that many people are “finding it tough”.
The Office for National Statistics (ONS) announced on Wednesday the rate of Consumer Prices Index (CPI) was 3.8 per cent in August, the same as July. This was the level that most economists had been expecting.
However, the rate of food and drink inflation rose to 5.1 per cent in August, from 4.9 per cent in July, as shoppers continued to face higher prices for items at the till.
Among food items, beef and veal has had the biggest annual rise in price, up by a quarter (24.9 per cent) over the past 12 months. Butter is next in line, up 18.9 per cent, while both chocolate and coffee have risen 15.4 per cent in the space of a year. More details on yesterday’s figures here.
Interest rates live - Business and Money, 17 September
06:58
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Karl Matchett
Morning all and welcome to our latest live blog across the business and finance worlds.
Today we’ll catch up on stock market matters, any further inflation reaction and the latest affecting workers at Jaguar Land Rover.
Our primary focus though is the 12 noon announcement from the Bank of England over interest rates.