Bank Of England Keeps Rate Unchanged

(RTTNews) - The Bank of England decided to hold the interest rate in a tight vote on Thursday and signaled that the rate will follow a gradual downward path if disinflation process continues.

The Monetary Policy Committee, led by Governor Andrew Bailey, voted 5-4 to maintain the bank rate at 4.00 percent.

The central bank had reduced the rate five times since August 2024, which is now at its lowest since early 2023.

The majority of members placed greater weight on risks of persistence in inflation, requiring more prolonged monetary policy restriction.

Meanwhile, four members voted to cut the rate by 25 basis points to 3.75 percent. The extent of further reductions will depend on the evolution of the outlook for inflation, the bank said. "If progress on disinflation continues, Bank Rate is likely to continue on a gradual downward path," the BoE added.