Bank of England keeps interest rates on hold
The Bank of England has announced its final interest rate decision of the year. The BoE kept the policy rate steady at 4.75 percent. BoE Governor Andrew Bailey stated, "We believe a gradual approach to future interest rate cuts is the right one, but with increasing uncertainty in the economy, we cannot make a commitment as to when or by how much we will cut rates next year."
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The Bank of England (BoE) has announced that it has kept its policy interest rate steady at 4.75 percent. It was noted that during the Monetary Policy Committee (MPC) meeting, 6 members, including BoE Governor Andrew Bailey, voted to keep the policy rate at 4.75 percent, while 3 members expressed a view in favor of a 25 basis point cut.
The statement recalled that annual inflation rose from 1.7 percent in September to 2.6 percent in November, noting that this was a rise above expectations.
The statement, which reported that service sector inflation in particular remains high, expressed that headline inflation is expected to follow an upward trend in the short term.
The statement noted that data on the UK's near-term economic activity has shown a decline recently, adding, "We expect economic growth to remain weaker than the level projected in November."