Sunday, July 21, 2024

Bank of England holds interest rates at 5.25% for seventh time

The Bank of England has held interest rates for the seventh time, at 5.25%, in line with expectations.

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way to help sustain growth and employment. At its meeting ending on 19 June 2024, the MPC voted by a majority of 7–2 to maintain Bank Rate at 5.25%. Two members preferred to reduce Bank Rate by 0.25 percentage points, to 5%.

Twelve-month CPI inflation fell to 2% in May from 3.2% in March, though is expected to rise slightly in the second half of this year.

Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: “It’s unsurprising that the Monetary Policy Committee kept interest rates on hold this month. Recent data has been a bit of a mixed bag: while inflation is falling and the labour market is loosening, wage growth remains stubbornly strong and services inflation is higher than the Bank’s forecast. Signs of continued persistence in domestic price pressures will have prompted caution among the Committee.

“We still expect the MPC to cut rates in August, but this is not a done deal – they remain very data-driven, so the evolution of key indicators over the coming month will be key. Furthermore, the pace of any rate cuts beyond August is likely to be gradual, if the Bank remained concerned about the persistence of underlying price pressures.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.