The Bank of England (BoE) left rates on hold for the second time in a row at 5.25%, and ruled out the possibility of cuts anytime soon. The Monetary Policy Committee (MPC) voted 6-3 to keep Bank Rate at 5.25%, as expected by markets. Governor Andrew Bailey said inflation was still too high and that the BoE was determined to get it all the way back to its 2% target.
The Bank of England has cautioned that the UK economy is poised for minimal growth until 2025, while interest rates are anticipated to remain elevated or potentially increase further. The GDP is projected to remain relatively stable, with zero growth predicted for 2024, a revision down from the previously forecasted 0.5% expansion.
Despite this, the Bank expects inflation to fall sharply in the coming months.