Reported 8 months ago
The Bank of England decided to keep its main interest rate at 5.25% in anticipation of the upcoming UK election. While the Monetary Policy Committee voted 7-2 to maintain rates, policymakers expressed that the decision was finely balanced, with Deputy Governor Dave Ramsden and external MPC member Swati Dhingra supporting a rate cut. BoE Governor Andrew Bailey highlighted the need to ensure inflation remains low before considering any rate adjustments, causing sterling to fall against the U.S. dollar. Markets now anticipate an 88% possibility of a rate cut by September. The decision to maintain rates comes amidst rising inflation expectations and political developments.
Source: YAHOO