The Bank of England Is Missing the UK’s Ugly Economic Truth

The Bank of England is belatedly waking up to the fact that Britain is struggling. It cut its official rate by 25 basis points to 3.75% on Thursday, but it’s not really grasping that more is needed. Its statement says future judgments will be a close call — somewhat confusing as the last two decisions couldn’t have been tighter.

The vote split of 5 to 4 shows the Monetary Policy Committee tide is turning ever so slowly, with Governor Andrew Bailey jumping sides to the doves. However, four members remain adamant that the preeminent risk is that inflation remains too high. The panel’s schism has only deepened. Gilt yields rose slightly as this briefing was less dovish than the market expected.