Holding borrowing rates and continuing bond sell-offs was widely expected but could be costly for chancellor
“Gradual” and “predictable” are the watchwords at the Bank of England. But for Rachel Reeves, preparing for a tough autumn budget, a more activist approach from Threadneedle Street could have helped.
The central bank on Thursday had two pieces of bad news for the chancellor: borrowing costs would be held unchanged at the current elevated level, while the Bank would proceed with a plans to sell billions of pounds in UK government bonds.