Inflation stays at 2.2% in August: "No chance of a cut from the Bank of England this week"

History show that all the time housing costs were low inflation was running a similar line. Now the housing costs are up inflation can’t seem to come down so surely a BBR decrease will help with decreasing inflation? With junior docs taking their pay increase, this could push it up more because of the wages element. The Bank of England seemed to be in a rush to increase rates without knowing the true effects but is less motivated to decrease them.

The base rate was never going to change in September, despite being needed, and whilst a number of reductions are expected over the course of the next year, there are still obstacles in the way. October is more likely.

With inflation holding at 2.2%, this will likely mean that the Bank of England will hold rates where they are for now, which was always the more likely scenario, particularly as core and services inflation increased. The next meeting in November will be crucial as we'll be in the aftermath of Labour's first Budget and we'll know if the economy continues to stutter.

The latest figures will temper expectations from those over-excited that Bank of England base rate cuts will come thick and fast. It looks as if nothing more will happen here until at least November as core and services inflation remain stubbornly sticky. That said, SWAP rates have fallen as market expectations are for slow and steady falls over the next twelve months and mortgage lenders are now well entrenched in a competitive rate war that may now see them dig in rather than foray too far further forward just yet.

The Bank of England will now likely hold this week, which is disappointing. We really want to see more rate cuts sooner than later and if true to their promise to keep inflation down with the hike in rates, this news should trigger a cut. 98 days until Christmas the last thing any of us want to be doing is rushing to get a last minute mortgage deal when we should be stuffing the turkey.

Today’s inflation numbers will leave the base rate cut hopefuls feeling a little deflated. The Bank of England will almost certainly hold rates tomorrow, wanting to see further easing before cutting rates further.

With the UK’s inflation figures for August still being close to the Bank of England's target of 2%, a base rate cut tomorrow is highly unlikely. However, inflation seems to have started to plateau around the target 2% figure. Should this continue, the hope would be that we see one if not two base rate cuts before the year is out.

This stability is exactly the golden egg that the Bank of England has been looking for. However, they will almost certainly hold the base rate tomorrow and maintain the slow and steady heading, rather than risk accelerating the decreases.

Steady on, inflation watchers. The 2.2% CPI figure may seem encouraging, but it's not quite time to pop the champagne corks. While it's close to the Bank of England's target, the slight rise in core and services inflation serves as a reminder that economic stability is still a work in progress. Lenders reducing rates might spark optimism, but it's crucial to remember that the Bank of England operates with caution. A dramatic 0.50% cut would be unprecedented and is highly unlikely. The Bank typically favours measured, incremental changes to monetary policy. With inflation still above target and economic uncertainties lingering, the BoE is likely to maintain a cautious stance. A rate hold seems the most probable outcome this week, with policymakers keen to see sustained evidence of easing inflationary pressures before considering any cuts. In essence, while we're moving in the right direction, it's prudent to temper expectations. The road to economic recovery is often long and winding.