UK Government official inflation statistics release

Bank of England Holds Rate at 5.25%, Eyes June Cut Amid Easing Inflation

May 9, 2024, 11:52 AM

The Bank of England has maintained its key interest rate at 5.25%, a 16-year high, during its latest meeting. Despite holding rates steady, the central bank signaled potential rate cuts in the near future as inflation, currently just above 3%, shows signs of easing. Two of the nine Monetary Policy Committee members voted for an immediate rate cut in a 7-to-2 decision. Governor Andrew Bailey indicated that the bank is optimistic about the economic outlook, noting that inflation is moving towards the 2% target, but more evidence is needed before initiating rate cuts. He also mentioned that a June rate cut is possible. The decision comes amid varying actions by global central banks, with some like the Fed delaying cuts and others, such as Sweden, already reducing rates.