Bank of England holds interest rates at 4.25%

In its meeting today (19 June), six members of the BoE Monetary Policy Committee (MPC) voted to leave the rates at the current level, while three opted to reduce the rate by 0.25 percentage points to 4%. The MPC reasoned there has been "substantial disinflation over the past two years, as previous external shocks have receded, and as the restrictive stance of monetary policy has curbed second-round effects and stabilised longer-term inflation expectations". "This has allowed the MPC to withdraw gradually some degree of policy restraint, while maintaining Bank Rate in restrictive terri...