Bank of England maintains bank rate at 5.25%

20 Jun '24

1 min read

Bank of England maintains bank rate at 5.25%

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The Bank of England's monetary policy committee in its meeting yesterday decided to maintain the bank rate at 5.25 per cent to meet the 2-per cent inflation target and sustain growth and employment.
Twelve-month CPI inflation fell to 2 per cent in May from 3.2 per cent in March.
The bank expects CPI inflation to rise slightly in the second half this year.

The Bank of England’s monetary policy committee (MPC) in its meeting yesterday decided to maintain the bank rate at 5.25 per cent to meet the 2-per cent inflation target and sustain growth and employment.

The committee voted by a majority of 7-2 to arrive at the decision.

Twelve-month consumer price index (CPI)-based inflation fell to 2 per cent in May from 3.2 per cent in March, close to the May monetary policy report projection.

Indicators of short-term inflation expectations have also continued to moderate, particularly for households.

CPI inflation is expected to rise slightly in the second half this year as declines in energy prices last year fall out of the annual comparison, the central bank said in a release.

UK GDP appears to have grown more strongly than expected during the first half of this year. Business surveys, however, remain consistent with a slower pace of underlying growth, of around 0.25 per cent per quarter.

The committee also concluded that the labour market continues to loosen, but remains relatively tight by historical standards.

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