The Bank of England Leaves UK Interest Rates Unchanged At 4.5% As Expected

Central Banks

The Bank of England Leaves UK Interest Rates Unchanged At 4.5% As Expected

The Monetary Policy Committee voted 8-1 (with Swati Dhingra dissenting) to maintain the Bank Rate at 4.5%.

The Bank of England stated that a “gradual and careful” approach to easing is appropriate, though interest rates remain on a “gradually declining path.”

Why hold rates despite weak growth?

The BoE forecasts inflation will reach 3.75% later this year, nearly double its target.

This decision follows the Federal Reserve’s move to hold rates at 4.25%–4.5% last night.

Both the U.S. and UK remain in wait-and-see mode.