6 hours agoFILE - The Bank of England in London, is shown on Dec. 15, 2022. The bank is expected to maintain interest rates at a 16-year high of 5.25%, but a cut wouldn't be a huge surprise as inflation falls from multi-decade highs. – The Bank of England has kept its main U.K. interest rate at a 16-year high of 5.25% with several policymakers still worrying about some key inflation measures.
In a statement Thursday, the bank’s nine-member Monetary Policy Committee voted 7-2 to keep rates unchanged, with the 2 dissenters backing a quarter-point reduction. Last time, only one member voted for a quarter-point cut.The increase in the number of those backing a rate reduction is a clear indication that cuts are on the cards.last week, which also kept rates, on hold, the majority on the panel wanted to see more evidence that inflation is under control.
The Bank of England, like the U.S. Fed and other central banks around the world, raised interest rates aggressively in late 2021 from near zero to counter price rises first stoked by supply chain issues during the coronavirus pandemic and then by Russia’s invasion of Ukraine. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.