The Bank of England confirmed a widely-expected hold in interest rates following its May meeting on Thursday.
LONDON — The Bank of England on Thursday announced a widely-expected hold on interest rates following its May meeting, as it said restrictive monetary policy was working to bring down inflation.
Members of the central bank's Monetary Policy Committee voted 7-2 to hold, with the latter favoring a cut. In the prior meeting only one member voted for a cut.It keeps the BOE's key Bank Rate at 5.25%.Market anticipation is building for interest rate cuts to begin in the summer, with money markets fully pricing in a 25 basis point reduction in August and 50 basis points overall this year.
Some economists see a cut as soon as the next meeting in June, and three or more cuts in 2024. That is largely because U.K. headline inflation is forecast to drop dramatically in April due to lower energy prices from the"While growth is increasing, the labor market continues to loosen. Ultimately, we think that will feed into weaker wage growth. We do expect that to come down across the course of this year," Matthew Swannell, U.K.
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