BUSINESS LIVE: BoE base rate decision looms; Shell ups dividend; BT earnings top £6bn

Published on: February 1, 2024

By Live Commentary

Updated: 07:49 GMT, 1 February 2024

The Bank of England’s Monetary Policy Committee will at midday reveal its latest decision on interest rates, with the bank forecast to keep base rate on hold at its current level of 5.25 per cent.

The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Shell, BT, AG Barr, Phoenix Group and GSK. Read the Thursday 1 February Business Live blog below.

> If you are using our app or a third-party site click here to read Business Live

We’ll win back shoppers from Aldi and Lidl, vows new Morrisons boss

The new boss of Morrisons has vowed to win back shoppers from Aldi after the floundering grocer’s private equity takeover.

Morrisons has lost customers to the discounter, and conceded its status as Britain’s fourth-biggest grocer to Aldi two years ago.

But Rami Baitieh said yesterday he would ‘start a new chapter’. In his first financial update since taking the reins in November, he said he was confident of a ‘bright future’.

BoE base rate decision looms

Ben Laidler, global markets strategist at eToro:

‘The Bank of England (BoE) has been the most hawkish of major central banks and this has made Sterling one of the best recent currency performers.

‘With UK inflation still double its 2% target, economic growth has been better-than-feared, and the government set for more tax cuts at its March budget.

‘But enough inflation-fighting progress has been made for the BoE to begin opening the door to lower interest rates starting this summer, with four cuts likely in the second half.

‘This would lag behind the US Fed and Europe’s ECB but be welcome, and borrowers have already started to benefit from the fall in bond yields.’