UK enters 'new phase of suspended animation' after Bank of England holds rates

Second consecutive hold

The UK has entered a new phase of the monetary policy cycle following the second consecutive hold in interest rates from the Bank of England today (2 November), experts have said.

While three members of the central bank's Monetary Policy Committee voted to raise interest rates by 25bps to 5.5%, a six member majority successfully maintained rates 5.25%. The Bank also revised its macroeconomics forecasts upwards, expecting inflation to decline to 4.75% in the current quarter, before dropping to 4.25% in the first quarter of 2024 and 3.75% in the second quarter. Inflation is now projected to return to 2% at the end of 2025, compared to the second quarter of 2025, as expected at the MPC's previous September meeting. Treasury Committee meets with US regulators ah...