Bank of England is 'buying time' with expected decision to hold rates at 5.25%

‘Lesser of two evils’

The decision by the Bank of England’s Monetary Policy Committee to keep interest rates at 5.25% for the sixth consecutive time is a sign the central bank is “buying time” for the economic picture to improve, before embarking on rate cuts.

According to George Lagarias, chief economist at Mazars, said the BoE is possibly waiting for wage inflation to come down "a bit further" for the Federal Reserve to make its own monetary intentions clearer before beginning its cutting cycle. Bank of England mirrors Federal Reserve and holds interest rates Markets had widely expected the Bank of England to hold rates yet again today (9 May), despite speculation that the first cut could have come in the MPC's May meeting in Q1. Two out of the nine members voted to cut the Bank rate by 25 basis points to 5%, which some saw as a signal...