Bank of England Holds Rates Steady, Defies Rate Cut Predictions
TL;DR Summary
The Bank of England has decided to keep its main interest rate unchanged at 5.25% and stated that monetary policy is likely to remain restrictive for an extended period of time. The decision comes as U.K. headline inflation fell to its lowest point in two years, but wage growth remains high. The central bank aims to bring inflation down towards its 2% target sustainably. The MPC projected that inflation will average around 4.75% in Q4 2023 before dropping to 3.75% in Q2 2024. Despite concerns about the impact of tight monetary policy on the economy, the U.K. Treasury believes the country has turned a corner in the fight against inflation.
- Bank of England leaves policy unchanged, says rates to stay high for 'extended period' CNBC
- Pound hits $1.27 as Bank of England pushes back against rate cut predictions – business live The Guardian
- BOE Holds Rates With Warning of a 'Way to Go' on Inflation Bloomberg
- Bank of England Keeps Interest Rates at 5.25%, a 15-Year High The New York Times
- Bank of England rebuffs rate cut talk after Fed ignites markets Reuters UK
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