The Bank of England (BoE) announced on Thursday that it will keep its interest rates unchanged at 4.75% after reducing them in November.
According to the bank's statement, six members of the Monetary Policy Committee (MPC) voted to hold rates unchanged and three against it. The three members were in favor of reducing the interest rates by 25 basis points (bps) to 4.5%. The bank noted that the decision was guided by the need to "squeeze remaining inflationary pressures out of the economy" and to achieve the CPI inflation target rate of 2% promptly and with enduring effectiveness.
"The Committee continues to consider a range of cases for how the past global shocks that drove up inflation may unwind, and therefore how persistent domestic inflationary pressures may be," the bank stated, adding that a "gradual approach to removing monetary policy restraint remains appropriate."
