The Bank of England is anticipated to keep interest rates unchanged for the third week in a row, as new data indicates potential fractures in the economy.
To reduce inflation, the central bank raised interest rates 14 times in a row, reaching a 15-year high of 5.25 per cent in August this year.
After noting an increase in the pace of inflation, Bank of England policymakers held rates in September and November.
The next meeting comes on the heels of significant economic statistics from the Office for National Statistics (ONS) last week, which also revealed signs of economic slowing.
The Office for National Statistics (ONS) reported today that the UK GDP declined 0.3% in October due to adverse weather in the manufacturing and construction sectors.
Wage growth has decreased at the fastest rate in two years, according to government data released yesterday.
Regular wages in the private sector, excluding bonuses, increased by 7.3% in the three months to October, down from 7.8% in the previous three months, indicating a softening in the labour market.
As a result, economists are now expecting more interest rate decreases next year.
Interest rate decreases of 0.75 percentage points were previously priced into financial markets for 2024.
The Bank of England has warned that rising interest rates could cause almost one million people’s mortgage payments to rise by more than £500 per month by the end of 2026.