The Bank of England has decided to maintain interest rates at 5.25% for the sixth consecutive time. The Monetary Policy Committee (MPC) of the Bank of England is focused on meeting the 2% inflation target. It is anticipated that this target will be achieved in the short term before rising later in the year.
At its recent meeting on 8 May, the MPC voted with a majority of 7-2 to keep the Bank Rate at 5.25%. This decision aligned with expectations, with two members advocating for a reduction of 0.25 percentage points to 5%.
Anna Leach, Deputy Chief Economist at CBI, commented on the decision stating that the MPC’s vote to hold rates was in line with their expectations. Services inflation and wages data indicate that a cautious approach is necessary due to high inflation rates in the services sector and above-average earnings growth.
Despite signs of an economic recovery, the MPC believes demand growth will lag behind supply growth in the coming years. Overall, the consensus points towards a potential rate cut in August.
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The Bank of England has decided to maintain interest rates at 5.25% for the sixth consecutive time. The Monetary Policy Committee (MPC) of the Bank of England is focused on meeting the 2% inflation target. It is anticipated that this target will be achieved in the short term before rising later in the year.
At its recent meeting on 8 May, the MPC voted with a majority of 7-2 to keep the Bank Rate at 5.25%. This decision aligned with expectations, with two members advocating for a reduction of 0.25 percentage points to 5%.
Anna Leach, Deputy Chief Economist at CBI, commented on the decision stating that the MPC’s vote to hold rates was in line with their expectations. Services inflation and wages data indicate that a cautious approach is necessary due to high inflation rates in the services sector and above-average earnings growth.
Despite signs of an economic recovery, the MPC believes demand growth will lag behind supply growth in the coming years. Overall, the consensus points towards a potential rate cut in August.
A message from the Editor:
Thank you for reading our news story. As you are aware, our primary goal is to provide editorially driven news content. However, journalism requires financial support, and we rely on advertising, print, and digital revenues for sustenance.
The Covid-19 pandemic has significantly impacted our industry, affecting our advertising revenues and our ability to cover journalism costs. Your support is vital. By making a small donation or subscribing to our magazine for just £31.50 per year, you can help us continue delivering quality journalism.
As a subscriber, you will enjoy unlimited access to our website and magazine, VIP event invitations, discounted rates for our awards, and exclusive newsletters and content. Simply click here to subscribe and rest assured of our commitment to providing you with top-tier journalism services. Thank you for your support.
