Bank of England’s Monetary Policy Decision
In a narrow decision, the Bank of England’s Monetary Policy Committee (MPC) opted to maintain the Bank Rate at 5.25%, with a vote split of 5–4. However, a unanimous vote emerged on the decision to decrease the stockpile of UK government bond purchases by £100 billion over the next year, bringing it to a total of £658 billion.
Economic Landscape
The Committee’s projections from August anticipated a return to the 2% inflation target by Q2 2025. These expectations were rooted in diminishing inflationary pressures both domestically and externally. Despite this, the risks surrounding inflation remained tilted to the upside, due to potential lingering impacts of external cost shocks on wages and prices.
Recent developments depict a mixed economic picture: global growth remains consistent with August’s…
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