The Bank of England (BoE) announced on Thursday its decision to reduce its interest rates by 25 basis points to 5%.
According to the bank's statement, five members of the Monetary Policy Committee (MPC) voted in favor of the cut and four against it. The body reaffirmed its commitment to taking inflation in the country down to its target of 2% "in a way that helps to sustain growth and employment," noting that the annual rate reached that figure in May and June.
The MPC warned, however, that inflation is expected to go up to around 2.5% in the second half of the year due to the existing domestic pressures. It reiterated its readiness to keep the BoE's monetary policy restrictive for as long as necessary to have the annual inflation rate medium term. "The Committee ... will decide the appropriate degree of monetary policy restrictiveness at each meeting," it concluded.
