The Bank of England (BoE) announced on Thursday that it is maintaining its key interest rate at 5.25%. One out of the nine Monetary Policy Committee members voted to cut the rate by 0.25 percentage points. "Monetary policy would need to remain restrictive for sufficiently long to return inflation to the 2% target sustainably in the medium term," the BoE said, noting that it could still be restrictive even if the rate is cut "given that it was starting from an already restrictive level."
The BoE said it stands ready to adjust monetary policy depending on the incoming data in order to return inflation to the 2% target "sustainably." It said it will continue to monitor the economy, "including a range of measures of the underlying tightness of labor market conditions, wage growth and services price inflation."
