England

2024 - 6 - 20

Bank of England Leaves Interest Rates Unchanged in Bold Move

Bank of England - economic policy - inflation - interest rates - Monetary Policy Committee - UK general election

Bank of England maintains the central bank's key rate at a 16-year high of 5.25%, raising speculation among traders. Will there be a post-election surprise cut? Find out more!

In a 'finely balanced' decision, the Bank of England has chosen to hold interest rates steady at 5.25%, defying expectations of a cut. This seventh consecutive freeze comes as a surprise, especially with the rate of inflation hitting the 2% target last month. The Monetary Policy Committee's (MPC) move is seen as a blow to Chancellor Rishi Sunak, leaving the door open for a potential post-election rate reduction. Despite slower inflation, officials maintained rates at their highest level since 2008, highlighting their cautious approach. The decision is likely to impact the upcoming general election in the UK, with the governing Conservative Party possibly facing disappointment. Traders are now closely watching for any hints of a change in policy direction from the central bank. Will there be a shift post-election? Only time will tell.

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Image courtesy of "CNBC"

Bank of England holds rates in 'finely balanced' decision; traders up ... (CNBC)

It keeps the central bank's key rate at a 16-year high of 5.25%, where it has been held since August 2023.

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Image courtesy of "The Guardian"

Bank of England keeps interest rates at 5.25% in 'finely balanced ... (The Guardian)

Seventh consecutive freeze comes despite fall in rate of inflation to 2% target last month.

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Image courtesy of "Financial Times"

Bank of England holds rates at 5.25% in 'finely balanced' decision (Financial Times)

MPC deals blow to Rishi Sunak but leaves door open to post-election cut.

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Image courtesy of "The New York Times"

Bank of England Holds Rates Steady, Despite Slower Inflation (The New York Times)

Officials kept rates at their highest level since 2008 for a seventh consecutive meeting, even as inflation dipped to 2 percent in May.

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Image courtesy of "The Associated Press"

Bank of England keeps main interest rate at 16-year high of 5.25 ... (The Associated Press)

The decision is likely to disappoint the governing Conservative Party ahead of the U.K.'s general election in two weeks time. A cut would have been seized upon ...

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