Bank of England holds interest rates at 5% after inflation stalls

Up to two cuts expected before year-end

Cristian Angeloni
clock • 2 min read

The Bank of England’s (BoE) Monetary Policy Committee (MPC) has decided to hold interest rates at 5% by a majority vote of eight to one.

Swati Dhingra was the only member who did not want to keep rates at 5%, voting instead for a second 25 basis point cut. This follows the first rate cut from the BoE since August, which had been an incredibly close, split decision with five to four members in favour. Additionally, the MPC unanimously voted to reduce the stock of UK government bond purchases by £100bn over the next 12 months, bringing the total to £558bn. Inflation figures on Wednesday (18 September) showed UK CPI had stalled in the 12 months to August at 2.2%, just off the central bank's target of 2%, which was achi...

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