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Bank of England votes to hold rates as doves turn cautious

The Bank of England held rates at 4.5% as policymakers opted for caution, defying expectations of a cut amid inflation concerns and global...

Tom Rees

The U.K.’s trend growth rate has halved from an annual average of 2.5% between 1955 and 2009 to 1.2% in the years ahead, according to the analysis.

Reeves hands are tied by Labour manifesto promises not to raise a number of big revenue-raising taxes, including income tax and VAT.

While experts forecast a rise, the U.K. jobless rate actually fell 0.2 percentage points to 4.2% in the three months to June.