BOE Vows Gradual Approach to Easing With Vote to Hold Rates
- UK central bank signals it won’t rush to cut borrowing costs
- Maintains £100 billion-a-year pace of balance-sheet run-off
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The Bank of England warned investors it won’t rush to ease monetary policy, deciding against a second consecutive cut in borrowing costs as it awaits further signs inflationary pressures have subsided.
The BOE’s Monetary Policy Committee voted 8-1 to keep rates steady at 5%, an outcome whose caution contrasts with the half-point reduction delivered in the US on the eve of the UK announcement on Thursday. While the decision was in line with the expectations of economists and investors, it pushed the pound to its strongest level against the dollar since March 2022.