In the UK, the inflation rate remained steady at 6.7% in September. This came as a surprise, as most economists had anticipated a further decrease. Despite the high inflation rate, the Bank of England is not expected to raise interest rates at its next policy meeting. Instead, it is likely to maintain its main borrowing rate at the current 15-year high of 5.25%. However, this stability in inflation raises concerns, especially among homeowners, that interest rates may remain elevated for an extended period.
In the previous month, the Bank of England halted nearly two years of interest rate increases as inflation declined from multi-decade highs of over 11%. Many economists anticipate a significant drop in inflation in the coming month. The UK currently has the highest inflation rate among the Group of Seven leading industrial economies, which some economists attribute to the country’s departure from the European Union. This has led to worker shortages in certain sectors, increasing business costs and causing trade disruptions.
