Bank of England keeps interest rates unchanged

VTV.vn - The Bank of England (BOE) has decided to keep its base interest rate at 4%, after a vote that was considered closer than expected.

Bank of England (BoE) headquarters in London. Photo: AFP/TTXVN

The Bank of England (BoE) kept its key interest rate unchanged at its meeting on November 6. Of the nine officials who voted, five voted to keep the rate unchanged and four voted to cut it by 0.25 percentage points.

The divergence of views comes as UK inflation in September stood at 3.8% and is believed to have peaked, thanks to tight monetary policy.

The BOE said its next interest rate decision will depend on whether inflation cools. Markets are now pricing in a 60% chance of a rate cut at its next meeting in mid-December, after more official economic data for October and November.

The decision marks the first pause in the BoE’s three-monthly rate cut cycle that will begin in August 2024. The BoE forecasts inflation will remain above its 2% target until the second quarter of 2027, although it is expected to ease slightly to 1.9%, while warning of continued weakness in the jobs market.

The BoE also expressed concern that households may not spend despite holding high savings, thereby slowing the economic recovery.

The BoE's decision to keep interest rates unchanged did not surprise investors. Previously, the market only assessed a probability of more than 30% for the possibility of the BoE cutting interest rates by 0.25 percentage points.

Source: https://vtv.vn/ngan-hang-trung-uong-anh-giu-nguyen-lai-suat-100251107061438981.htm