Bank of England meets expectations by holding rates at 5.25%

Six - three split among Monetary Policy Committee members

Elliot Gulliver-Needham
clock • 2 min read

The Bank of England (BoE) has held interest rates at 5.25%, meeting market expectations and raising hopes that its rate hiking cycle has peaked.

The central bank's Monetary Policy Committee (MPC) voted six to three to hold interest rates, with the minority voting to hike rates by 25bps. Last month, the MPC voted five to four to hold interest rates, in a surprise to analysts. Investors had widely predicted the 15th rise in a row to 5.5% from 5.25%, but a sharp decline in inflation in August pushed the committee to hold rates. The shift in voting patterns resulted from the replacement of Jon Cunliffe on the MPC by Sarah Breeden, following his retirement. Despite market expectations for a hold, inflation still remains well abo...

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