Fri. Dec 20th, 2024

Why did the Bank of England hold interest rates after the Federal Reserves didn't?

Why did the Bank of England hold interest rates after the Federal Reserves didn't?

The Bank of England voted to hold interest rates at five per cent, with policymakers signalling that they would take a “gradual” approach to lowering borrowing costs over the months ahead.

Eight members of the nine-strong Monetary Policy Committee (MPC) supported a hold, with only Swati Dhingra backing a second cut.

The decision was widely anticipated by markets, although the odds of a 25 basis point rate cut had crept up slightly in the days leading up to the decision.

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Produced by: Christopher Dorrell, Scarlett Wild, Larissa Howie

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