The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 20 March 2024, the MPC voted by a majority of 8–1 to maintain Bank Rate at 5.25%. One member preferred to reduce Bank Rate by 0.25 percentage points, to 5%. Since the MPC’s previous meeting, market-implied paths for advanced economy policy rates have shifted up. In the United States and the euro area, inflationary pressures have continued to abate, though by slightly less than expected. Material risks remain, notably from ... (full story)

The Bank of England interest rate has been kept at 5.25% for a fifth consecutive time, but says the prospects for a cut are "moving in the right direction". The nine-member rate-setting committee continued to collectively judge it was too early to contemplate a downwards move, despite further progress in taming inflation revealed earlier this week. However, two members who had previously voted for a rate hike dropped that view. It meant that eight of the nine supported no change while one member backed, for the second meeting in a row, a reduction to 5%. The minutes of the meeting made it clear the Bank was still ... (full story)