9/21/2023, 1:00 PM (Source: TeleTrader)
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BoE holds key interest rate steady at 5.25%

The Bank of England's (BoE) Monetary Policy Committee (MPC) announced on Thursday it has decided in a 5-4 vote to to maintain its primary interest rate at the current level of 5.25%. Four members of the committee believed it was suitable to raise the rate by an additional quarter of a percentage point, which would have brought it to 5.5%.

"There were increasing signs of some impact of tighter monetary policy on the labour market and on momentum in the real economy more generally," the policymakers pointed out, adding that headline and services inflation began to show signs of cooling in August. The Bank of England, however, did not rule out further monetary tightening should inflationary pressures persist for longer than anticipated.

The policymakers forecasted UK's gross domestic product to expand by 0.1% in the third quarter. The bank revealed it will also reduce its holdings of UK government bonds by £100 billion within the next twelve months.

Baha Breaking News (BBN) / AB