The Bank of England (BoE) Monetary Policy Committee (MPC) announced on Thursday its decision to keep its headline bank rate the same at 4.5%, as predicted.
The decision was passed after an 8–1 vote, with one member of the MPC advocating a cut of 0.25 percentage points. The rest considered holding the rate steady as the right approach to have the annual inflation rate meet its target of 2% as it currently sits at 3%.
The bank noted that, despite "substantial progress on disinflation" recently, risks such as geopolitical uncertainties and the United States' tariffs remain. It also warned that, despite a modest growth in Britain's gross domestic product (GDP), "business survey indicators generally continue to suggest weakness in growth and particularly in employment intentions. In recent quarters, subdued activity has been judged to reflect both demand and supply factors."
