Bank of England holds rates at 5.25% as MPC consensus grows

Fifth consecutive hold

The Bank of England’s Monetary Policy Committee has decided to hold interest rates at the current 5.25% in its fifth consecutive move.

Eight members voted to keep rates at the current level, while one opted for a 25 basis point cut. This marked a closer consensus from the last meeting in February, when six members voted to hold, two called for an increase to 5.5% and one opted to cut by 25 bps. The move was widely expected by markets and follows a similar path to the recent decisions by the European Central Bank and the Federal Reserve. However, the outlook for rate cuts may be easing as inflation fell more than expected in February at 3.4%, after stalling at 4% in December 2023 and January 2024. UK inflation beat...