- The Bank of England has decided to keep interest rates unchanged at 5.25% for the second consecutive meeting.
- Despite holding rates steady, the central bank warned that monetary policy would need to remain tight for “an extended period of time” due to a bleak economic outlook.
- The Bank of England anticipates that economic growth will remain “well below historical averages” over the medium term, even as its forecasts suggest that inflation will persist longer than previously expected.
- The Monetary Policy Committee voted six to three in favor of keeping the benchmark rate at 5.25%, with a minority of members advocating for a further quarter-point increase.
- The central bank expects the UK government to achieve its goal of halving inflation by the end of the year but doesn’t anticipate inflation dropping below its 2% target until the end of 2025.