- Prior 4.75%
- Bank rate vote 6-3 vs 8-1 expected (Dhingra, Ramsden, Taylor voted to cut bank rate by 25 bps)
- A gradual approach to removing monetary policy restraint remains appropriate
- We can’t commit to when or by how much we will cut rates in 2025 as economic uncertainty is high
- Services consumer price inflation has remained elevated
- Remaining domestic inflationary pressures are resolving more slowly
- Most indicators of UK near-term activity have declined
- Labour market is broadly in balance
- But there remains significant uncertainty around its developments, especially wage indicators
- Monetary policy will need to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term have dissipated further
- Full statement
This article was written by Justin Low at www.forexlive.com.
