The headquarters of the Bank of England (BoE) in London. Photo: AFP/VNA
The Bank of England (BoE) decided to keep interest rates unchanged on February 5th, but this decision was only made after a surprisingly close vote of 5 in favor and 4 against. The BoE also anticipates a future interest rate cut if the sharp decline in inflation in the coming months proves to be more than just a temporary phenomenon.
Despite sharply lowering its forecast for UK economic growth this year and rising unemployment, the Bank of England (BoE) kept its benchmark interest rate at 3.75%. This decision was in line with most economic analysts' predictions ahead of the BoE's meeting. However, earlier polls predicted a more likely overwhelming vote of 7 in favor and 2 against keeping the interest rate unchanged.
The Bank of England (BoE) remains cautious as the UK currently has the highest inflation rate among the world's major and developed economies. The central bank has already cut interest rates four times in 2025. The BoE now forecasts inflation to fall to around its target of 2% by April – largely supported by measures in Chancellor Rachel Reeves' budget introduced at the end of November 2025. However, the BoE emphasizes it wants to ensure this downward trend is not temporary.
The Bank of England (BoE) also lowered its forecast for UK economic growth in 2026 from its previous estimate of 1.2% to 0.9%, before a recovery in 2027 and 2028. The central bank also raised its forecast for the peak unemployment rate to 5.3%, up from its previous estimate of 5.1%.
Source: https://vtv.vn/boe-giu-nguyen-lai-suat-10026020519480548.htm
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