Bank of England Holds Rates at 16-Year High of 5.25%, Hints at August Cut

Jun 20, 2024, 11:05 AM

The Bank of England (BoE) has decided to maintain the UK’s base interest rate at 5.25%, a 16-year high and the highest level since 2008, despite inflation falling to the central bank's 2% target. The decision was made by a majority vote of 7-2, with two members voting to lower the rate. The BoE cited persistent underlying inflation pressures as the reason for keeping the rate unchanged. Governor Bailey noted that the decision was 'finely balanced' for some policymakers. The decision comes ahead of the upcoming UK election, and the central bank hinted that an August rate cut is possible, with markets now pricing in potential cuts later this year.