Bank of England sees budget cutting inflation by around 0.4-0.5 percentage points
Editorial & Advertiser disclosureGlobal Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.FinancePublished by Global Banking and Finance ReviewPosted on December 9, 2025LONDON, Dec 9 (Reuters) - The Bank of England estimates that finance minister Rachel Reeves' budget announced last month will knock off around 0.4 to 0.5 percentage points from the annual rate of inflation from around midway through next year, a top official said on Tuesday."We think it will reduce inflation by between 0.4 and 0.5 percent for a year from the second quarter of 2026," Deputy Governor Clare Lombardelli told lawmakers from parliament's Treasury Committee, citing an early analysis from BoE staff.The Office for Budget Responsibility had previously estimated a 0.4 percentage point reduction to inflation over the 2026/27 financial year as a result of budget policies. (Reporting by Andy Bruce and David Milliken)
