Bank of England Holds Interest Rate Steady with Potential Cut by August
May 9, 2024
The Bank of England has kept the main UK interest rate at 5.25% after a 7-2 vote.
A rate cut is possible in June if economic conditions, such as falling inflation and improvement signs, persist.
Governor Andrew Bailey is showing cautious optimism regarding inflation and may announce a rate reduction by August.
Future rate decisions will hinge on forthcoming economic data, including labor market and inflation figures.
The Bank of England has raised its growth forecasts for the UK economy, providing support to Prime Minister Rishi Sunak's administration.
Market expectations include the potential for two interest rate cuts in 2024, beginning in August.
Summary based on 23 sources
Get a daily email with more Macroeconomics stories
Sources
The New York Times • May 9, 2024
Bank of England Holds Interest Rates Steady, but Signals Cuts
The Guardian • May 9, 2024
Bank of England keeps interest rates on hold at 5.25%
The Guardian • May 9, 2024
UK interest rates are close to a decline – maybe starting as soon as next month