The Bank of England kept interest rates unchanged on Thursday, in line with the actions of the Federal Reserve on Wednesday. It is still likely to lower rates by a greater extent than the Federal Reserve later this year. Like the Federal Reserve, the Bank of England expects inflation to continue to slow in the coming months, but it wants to ensure that inflation is on the right track and avoid cutting borrowing costs too quickly. However, the UK economy has been much weaker than that of the USA. After remaining flat in the third quarter of last year, the UK economy grew only 0.1% in the fourth quarter, barely avoiding recession. Data released last week showed that GDP declined again in January. Part of the problem is global concerns about the Russia-Ukraine conflict and President Trump's tariff policies, but the UK economy also has its own issues. The government, led by Starmer, has been struggling to restore Consumer and business confidence in the outlook. Due to concerns that the market may react negatively to the large spending plans, the government announced a series of tax increases to help pay for social services, but it has not strongly pushed for growth stimulus.